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COUNTY OF BUTTE State of California

COMPREHENSIVE ANNUAL FINANCIAL REPORT

YEAR ENDED JUNE 30, 2019

PARADISE LAKE PHOTO BY: TODD TOTH

Prepared Under the Supervision of:

GRACIELA C GUTIERREZ, COUNTY AUDITOR-CONTROLLER

COUNTY OF BUTTE, CALIFORNIA TABLE OF CONTENTS


INTRODUCTORY SECTION

Letter of Transmittal 1

Board of Supervisors 6

Principal County Officials 7

Organizational Chart 8

GFOA Certificate of Achievement for Excellence in Reporting 9

FINANCIAL SECTION

Independent Auditors’ Report 10

Management’s Discussion and Analysis 13

Basic Financial Statements

Government-Wide Financial Statements

Statement of Net Position 24

Statement of Activities 25

Fund Financial Statements

Governmental Funds

Balance Sheet 26

Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position 27

Statement of Revenues, Expenditures, and Changes in Fund balance 28

Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Government-Wide Statement of Activities 29

Proprietary Fund

Statement of Net Position 30

Statement of Revenues, Expenses, and Changes in Net Position 32

Statement of Cash flows 33

Fiduciary Fund

Statement of Fiduciary Net Position 35

Statement of Changes in Fiduciary Net Position 36

Notes to Basic Financial Statements 37



Required Supplementary Information

County Employees’ Retirement Plan (Defined Benefit Pension Plans) Required Supplementary Information

Schedule of Changes in Net Pension Liability and Related Ratios – Miscellaneous Plan 89

Schedule of Changes in Net Pension Liability and Related Ratios – Safety Plan 90

Schedule of Plan Contributions 91

Other Postemployment Benefits (OPEB) Plan

Schedule of Changes to Net OPEB Liability 92

Schedule of Plan Contributions 93

Major Governmental Funds – Budgetary Comparison Schedules

General Fund 94

Social Services Fund 98

Behavioral Health Fund 99

Road Fund 100

Note to Required Supplementary Information 101

Supplementary Information

Nonmajor Governmental Funds 102

Combining Balance Sheet 104

Combining Statement of Revenues, Expenditures, and Changes in Fund Balance 107

Public Health Fund 110

Equipment Replacement Fund 111

Transit Fund 112

Housing and Community Development Fund 113

Fish and Game Fund 114

Child Support Services Fund 115

County Service Areas Fund 116

IHSS Public Authority Fund 117

Impact Fees Fund 118

Disaster Recovery Special Revenue Fund 119

Debt Service Fund 120

Capital Projects Fund 121

Permanent Fund 122



Supplementary Information (Continued) Internal Service Funds 123

Combining Statement of Net Position 124

Combining Statement of Revenues, Expenses, and Changes in Fund Net Position 126

Combining Statement of Cash Flows 128

Fiduciary Fund 130

Combining Statement of Fiduciary Assets and Liabilities 131

Combining Statement of Changes in Fiduciary Assets and Liabilities 132

STATISTICAL SECTION 133

Financial Trends

Net Position by Component 134

Changes in Net Position by Component 135

Fund Balances – Governmental Funds 137

Revenue Capacity

Property Taxes, Levies, and Collections – Direct and Overlapping Governments 140

Assessed Value of Taxable Property 141

Property Tax Rates – Direct and Overlapping Governments 142

Principal Property Tax Payers 143

Debt Capacity

Legal Debt Margin Information 144

Ratio of Net General Obligation Bonded Debt to Taxable Assessed Value and Net General Obligation Debt per Capita 145

Ratio of General Bonded Debt Outstanding 146

Overlapping Bonded Debt 147

Ratio of General Bonded Debt Outstanding 148

Demographic and Economic Statistics 149

County Industry Employment Distribution 150

Miscellaneous Statistical Information 151

Principal Employers 152

Operating Information

Operating Indicators by Function 153

Capital Asset Statistics by Function 154

GLOSSARY 155

INTRODUCTORY SECTION

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25 COUNTY CENTER DRIVE December 13, 2019 To the Citizens of Butte County, California

The Comprehensive Annual Financial Report (CAFR) of the County of Butte (County) for the fiscal year ended June 30, 2019, is hereby submitted in compliance with Sections 25250 and 25253 of the Government Code of the State of California (State). The report contains financial statements that have been prepared in conformity with generally accepted accounting principles in the United States of America (GAAP) prescribed for government entities. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the County. To the best of our knowledge and belief, the enclosed data are accurate in all material respects and present fairly the respective financial position of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the County, as of June 30, 2019, and the respective changes in financial position and cash flow, where applicable, thereof for the fiscal year then ended. All disclosures necessary to enable the reader to gain an understanding of the County’s financial activities have been included. This letter of transmittal is designed to complement the Management’s Discussion and Analysis (MD&A) and should be read in conjunction with it. The County’s MD&A can be found on pages 15 through 28 of this report. The financial reporting entity of the County includes all the funds of the primary government (i.e., Butte County as legally defined), as well as all of its component units. Component units are legally separate entities for which the primary government is financially accountable. Blended component units, although legally separate entities, are, in substance, part of the primary government’s operations and are included as part of the primary government. Accordingly, certain districts and agencies accounted for in the Special Revenue are reported as part of the primary government. For a more detailed overview of the County’s component units see the Notes to the Basic Financial Statements. PROFILE OF THE GOVERNMENT One of the State’s original 27 counties, the County was established by an act of the State Legislature on February 18, 1850. The County is located in the northern portion of the Sacramento Valley. Rising from the Sacramento River, the County’s western boundary, to the Sierra Nevada Mountains, its eastern perimeter, the County’s 1,665 square miles range in elevation from sixty feet to over 7,000 feet resulting in a considerable variation in climate. There are five incorporated cities/town located within the County: Biggs, Chico, Gridley, Oroville, and Paradise. The County’s population is 226,466 with approximately 35% of the residents living in the unincorporated area.

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Policymaking and legislative authority is vested in the County Board of Supervisors (the Board), which consists of an elected supervisor from each of five districts. The Board is responsible, among other things for passing ordinances, adopting the budget, appointing committees, appointing the Chief Administrative Officer (CAO), and appointing nonelected department heads. Supervisors are elected to four-year terms staggered every two years with two supervisors being elected during an election and two years later, three supervisors are elected. The County Charter designates that certain officers are elected which are responsible for the offices of the County: Assessor, Auditor-Controller, Clerk-Recorder, District Attorney, Sheriff-Coroner, and Treasurer-Tax Collector. The County provides a full range of services including public safety; health and sanitation; the construction and maintenance of highways, streets, and infrastructure assets; recreational activities and cultural events; election; library; social services; and administration. The County maintains a website located at: www.buttecounty.net that provides online services and extensive information about County government. The County’s website includes information about the Board of Supervisors, Board meeting agendas, County job listings, viewing and paying Property Taxes, purchasing bid solicitations, County directories, financial information and links to other local resources just to name a few.

MAJOR INITIATIVES In the wake of the Camp Fire, the demands of construction to advance the recovery of the community has led us to redirect resources. As a result our capital projects although still a priority have shifted on status. Capital Projects

• Jail Capacity Expansion Construction/Evidence Storage and Morgue

Senate Bill 863 provides for a total of up to $500 million dollars in funding to counties for the acquisition and construction of adult local criminal justice facilities, which will be made available through a competitive funding process administered by the State. Butte County submitted an application for funding in order to construct a new supplemental adult local criminal justice facility that will help the County cope with the impacts of the 2011 Public Safety Realignment, which affected an increase in the number of criminal offenders incarcerated and supervised locally. Butte County was awarded $40 million in funding from the State and will be required to provide $4.445 million in County funds. The jail construction is in the planning stage. The Evidence Storage and Morgue project is anticipated a cost of more than $8,000,000 and will be funded by Criminal Justice Facilities Construction Funds, impact fees and debt financing. This project started in August 2015 and we are now in the design and construction phase.

• Neal Road Recycling and Waste Facility Module Expansion

This project includes the management, design, construction, and quality assurance for the development of four waste modules (5A-5D). Modules (5A-5C) are expected to be developed over the next 7 years. The build-out of the base liner system is anticipated to create the foundation for the remainder of the landfill’s life (estimated to end in 2048). Funding will come from Neal Road Landfill Enterprise Fund balance and landfill facility fees. The total project cost is estimated at $10,500,000. In addition, the Camp Fire required an additional management of nearly 1 million cubic yards of fire debris and ash. The county will construct new landfill disposal areas as a result. It also intends to divert 8,000 tons of wood and green waste.

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• Neal Road Recycling and Waste Facility Septage Receiving Station This project is to acquire and construct additional land to provide for permanent septage receiving, treatment, and disposal facilities. The funding source of this estimated $5,000,000 is the State Revolving Loan Fund for wastewater projects, Neal Road Landfill Enterprise Fund balance and landfill facility fees. The project is slated to begin fiscal year 2017-2018 to be completed in fiscal year 2022-2023. The Camp Fire caused approximately $2,000,000 of damage to the gas and storm water collection system. Those repairs are in progress.

• Fire Station 37 Reconstruction (Concow)

Fire Station 37 was destroyed by the Camp fire. Its reconstruction will be funded with insurance proceeds. We are in the design phase of this project.

FACTORS AFFECTING FINANCIAL CONDITION Economic Challenges In Novermber of 2018, the County experienced the most devastating event. The Camp Fire, which literally destroyed most of the Town of Paradise. The fire burned 153,336 acres and damaged or destroyed more than 19,000 structures. Responding to this event has strained County resources. Coordinated efforts with FEMA (Federal Emergency Management Agency) and the State will continue through the coming year. We have increased expenditures at the Neal Road Recycling and Waste Facility for debris removal and Road Fund projects for emergency repairs. We are challenged with the need for grant management related to the disaster programs for disaster resonse, debris and tree removal to name a few. We’ve also encountered a new economic challenge this year imposed by PG&E. The public safety power shutoffs has necessitated the additional resources to maintain operational continuity.

The County has established a pension strategy which includes setting up a 115 Trust to collect an extra 1% of payroll for funding the growing unfunded pension liabilities.

The County has been fortunate to receive three years of property tax backfill to help fill the gap caused by the devastation of the Camp Fire. As we focus on recovering and then rebuilding Paradise and the surrounding communities impacted by the devastation we are optimistic that Butte County Strong will prevail. However, it’s important to be mindful of the necessary prudence when utilizing our limited resources as we brace for the economic challenges facing us today and in the near future. Internal Control

The management of the County has established a comprehensive framework of internal controls designed to ensure that the assets of the government are protected from loss, theft or misuse. This framework ensures that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with accounting principles generally accepted in the United States of America. Internal controls are designed to provide reasonable, but not absolute, assurance that these objectives are met. Reasonable assurance provides that the cost of internal controls should not exceed the benefits and that decisions often require the use of estimates and judgments by management.

Single Audit

As a recipient of federal and state financial assistance, the County is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act Amendments of 1996 and the U.S. Office of

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Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Audits of States, Local Governments, and Non-profit Organizations. Information related to this single audit includes the Schedule of Expenditures of Federal Awards, Schedule of Findings and Questioned Costs, and the independent auditor’s report on internal control and compliance. The County is also responsible for ensuring that adequate internal controls are in place to ensure compliance with applicable laws and regulations related to those programs. Internal controls are subject to periodic evaluation by management and the Auditor-Controller Division’s internal audit staff. The 2018-2019 Single Audit will be issued under separate cover and will be available on the Butte County website http://www.buttecounty.net/auditor.

Budgeting Controls

In addition to accounting controls, the County maintains budgetary controls. The objective of these controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the Board of Supervisors.

In accordance with the provisions of Sections 29000 and 29143, inclusive, of the California Government Code and other statutory provisions, commonly known as the County Budget Act, the County prepares a budget for each fiscal year on or before August 30. Budgeted expenditures are enacted into law through the passage of an appropriation. This mandates the maximum authorized expenditures for the fiscal year and cannot be exceeded except by subsequent amendments to the budget by the County’s Board of Supervisors.

An operating budget is adopted each fiscal year for all Governmental Funds. Expenditures are controlled at the object level within budget units for the County. The object level within a budget unit is the level at which expenditures may not legally exceed appropriations. Pursuant to Board Resolution 04-029 transfers of appropriations between object levels within the same budget unit require approval of the Chief Administrative Office and Auditor-Controller. Any amendments or transfers of appropriations between departments or funds must be approved by the Board of Supervisors. The Board of Supervisors must approve supplementary appropriations normally financed by unanticipated revenues during the year. Budgeted amounts in the budgetary financial schedules are reported as originally adopted and are amended during the fiscal year by resolutions approved by the Board of Supervisors.

The County uses an encumbrance system as a tool to assist in controlling expenditures beyond the normal budgetary accounting for the general, special revenue, debt service funds and the capital projects funds. Under this system, purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of applicable appropriations.

Credit Rating

The County continues to maintain its credit rating of A+ by Standard and Poor’s Rating Service. The County proudly maintains a strong credit rating and strives to continue this achievement. OTHER INFORMATION

Independent Audit

http://www.buttecounty.net/auditor

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County charter requires an annual audit by independent certified public accountants. The firm of Clifton, Larson & Allen, LLP was selected by the County to meet this requirement. The goal of the independent audit was to provide reasonable assurance that the financial statements of the County, for the fiscal year ended June 30, 2019, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and evaluating the overall financial statement presentation. The independent auditors concluded, based upon their audit results, that there was a reasonable basis for rendering an unqualified (clean) opinion that the County’s basic financial statements for the fiscal year ended June 30, 2019, are fairly presented in conformity with accounting standards generally accepted in the United States of America. The independent auditor’s report is presented as the first item of the financial section of the report.

Awards and Acknowledgments

The GFOA awarded the prestigious Certificate of Achievement for Excellence in Financial Reporting to the County for successful completion of the CAFR for the fiscal year ended June 30, 2018. This achievement represents the County’s 12th consecutive award. This award is the highest form of recognition for excellence in state and local government reporting. In order to be awarded a Certificate of Achievement, the government had to publish an easily readable and efficiently organized CAFR that satisfied both accounting principles generally accepted in the United States of America and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe this current CAFR continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.

The preparation of this Comprehensive Annual Financial Report could not have been accomplished without the efficient and dedicated services of staff from the Auditor-Controller office and the cooperation and assistance of all County departments. I would like to commend the Board of Supervisors for its interest, support, and exemplary leadership in planning and conducting the financial operations of the County in a responsive and progressive manner.

Respectfully submitted,

Graciela C. Gutierrez County Auditor-Controller

COUNTY OF BUTTE, CALIFORNIA BOARD OF SUPERVISORS

JUNE 30, 2019

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District 1 Bill Connelly District 2 Debra Lucero District 3 Tami Ritter District 4 Steve Lambert, Chair* District 5 Doug Teeter, Vice Chair* *Chosen annually at the first meeting in January.

COUNTY OF BUTTE, CALIFORNIA PRINCIPAL COUNTY OFFICIALS

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Elected Officials Assessor Diane Brown Auditor-Controller Graciela Gutierrez Clerk/Recorder Candace Grubbs District Attorney Mike Ramsey Sheriff-Coroner Kory Honea Treasurer-Tax Collector Troy Kidd Appointed Officials Agricultural Commissioner Louie Mendoza Interim Behavioral Health Director Scott Kennelly Chief Administrative Officer Shari McCracken Chief Probation Officer Wayne Barley Child Support Services Director Sean Farrell County Counsel Bruce S. Alpert Development Services Director Tim Snellings Employment and Social Services Director Shelby Boston Farm, Home & 4-H Advisor Luis Espino Fire Chief David Hawks General Services Director Grant Hunsicker Human Resources Director Sheri Waters Information Systems Director Art Robison Library Director Melanie Lightbody Public Health Director Danette York Public Works Director Dennis Schmidt Water & Resource Conservation Director Paul Gosselin

COUNTY OF BUTTE, CALIFORNIA ORGANIZATION CHART

JUNE 30, 2019

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COUNTY OF BUTTE, CALIFORNIA GFOA CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN REPORTING

JUNE 30, 2019

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FINANCIAL SECTION

CliftonLarsonAllen LLP CLAconnect.com

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INDEPENDENT AUDITORS’ REPORT

Board of Supervisors County of Butte, California Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the County of Butte, California (the County), as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the County, as of June 30, 2019, and the respective changes in financial position, and where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Board of Supervisors County of Butte, California

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Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the schedule of changes in net pension liability and related ratios, schedule of plan contributions for the County’s employees’ retirement plan, the schedule of changes in County’s other postemployment benefits (OPEB) plan and related ratios, schedule of plan contributions for the County’s OPEB plan, and budgetary comparison information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County of Butte’s basic financial statements. The introductory section, combining and individual nonmajor fund financial statements and schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.

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Board of Supervisors County of Butte, California

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 13, 2019 on our consideration of the County’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the County’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County’s internal control over financial reporting and compliance.

CliftonLarsonAllen LLP

Roseville, California December 13, 2019

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MANAGEMENT’S DISCUSSION AND ANALYSIS The information in this section is not covered by the Independent Auditors’ Report. It is presented as required supplementary information for the benefit of the readers of the Comprehensive Annual Financial Report.

COUNTY OF BUTTE, CALIFORNIA MANAGEMENT’S DISCUSSION AND ANALYSIS

JUNE 30, 2019

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In this section of the County of Butte’s (County) Comprehensive Annual Financial Report, the County’s management discusses financial results for the fiscal year ended June 30, 2019. It should be read in conjunction with the County’s financial statements following this section. All dollar amounts included in the Management’s Discussion and Analysis section are expressed in thousands unless otherwise indicated. FINANCIAL HIGHLIGHTS

Net Position-Government Wide $ (26 million)

Change in Net Position from the previous year was adecrease of $12 million or 82% due to the increase inpension liability and increased camp fire related demandssuch as behavorial health and landfill services.

Fund Balance-Governmental $141 million

Change in Governmental Fund balance from the previousyear was a decrease of $3 million or 2% due to higherliabilities including accrued payroll and accounts payable.

Fund Balance- General Fund $55 million

Change in General Fund balance from the previous yearwas an increase of $6 million or 12% due to the increasein revenues including State and Federal grants.

Expenses- Governmental $455 million

Change in Expenses for Governmental Activities from the previous year was an increase of $25 million or 6%.

Revenues- Governmental $429 million Change in Revenues for Governmental Activities from the

previous year was an increase of $33 million or 8%.

Long Term Liabilities $384 millionChange in Long Term Liabilities for GovernmentalActivities from the previous year was a decrease of $1million or 0.3% due to a decrease in the OPEB liabilities.

OVERVIEW OF THE FINANCIAL STATEMENTS

A. Basic Financial Statements The basic financial statements presented in the County’s CAFR are divided into three different sections: 1) government-wide financial statements, 2) fund financial statements and 3) the notes to the financial statements. This report also includes supplementary information intended to furnish additional detail to support the basic financial statements themselves.


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B. Government-Wide Financial Statements The government-wide financial statements are designed to provide an overview of the County’s finances, in a manner similar to a private-sector business that is, using the accrual basis of accounting. They demonstrate accountability of Butte County by showing the extent to which it has met operating objectives efficiently and effectively, using all resources available, and whether it can continue to do so. The statement of net position presents information on all of the County’s assets and liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the County is improving or declining.

The statement of activities presents information showing how the County’s net position changed during the fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). The statement of net position and the statement of activities distinguish functions of the County that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the County include general government, public protection, public ways and facilities, health and sanitation, public assistance, education, and recreation. The business-type activities of the County include a waste management operation.

The government-wide financial statements also provide information regarding the County’s component units, entities for which the County (the primary government) is considered to be financially accountable. Blended component units, although legally separate entities, are in substance part of the County’s operations and therefore data from these component units are blended in with operational funds of the County.

C. Fund Financial Statements

The fund financial statements provide evidence of accountability by demonstrating compliance with budgetary decisions made in public forum. A fund is a grouping of related accounts that are used to maintain control over resources that have been segregated for specific activities or purposes stipulated by laws, regulations or policies. The funds of the County are divided into three categories: governmental, proprietary, and fiduciary funds.

Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.


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Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The County maintains 17 individual governmental funds. On the financial statements for governmental funds information is presented separately for four major funds: the General Fund, the Social Services Fund, the Behavioral Health Fund, and the Road Fund. Data from the other governmental funds are aggregated into a single column. Individual fund data for each of these nonmajor governmental funds is provided in the combining statements and schedules section of this report.

The County adopts an annual appropriated budget for its general fund. A budgetary comparison statement has been provided for the general fund to demonstrate compliance with this budget.

Proprietary funds are of two types. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The County uses an enterprise fund to account for its central landfill operations. Internal service funds are used to accumulate and allocate costs internally among the County’s various functions. The County uses internal service funds to account for insurance and utilities. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements.

Proprietary funds provide the same type of information as the part of government-wide financial statements, only in more detail. The County’s internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements.

Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the County’s programs. The accounting used for fiduciary funds is much like that used for proprietary funds.

D. Notes to the Basic Financial Statements

The notes to the basic financial statements provide additional information that is essential to a full understanding of the financial information provided in the government-wide and fund financial statements.


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E. Required Supplementary Information

In addition to the basic financial statements, this report presents Required Supplementary Information. The required supplementary information is presented concerning the County’s progress in funding its obligation to provide pension and OPEB (Other Postemployment Benefits) benefits to its employees.

The combining statements referred to earlier in connection with nonmajor governmental funds and internal service funds are presented immediately following the required supplementary information on pensions and OPEB. GOVERNMENT-WIDE OVERALL FINANCIAL ANALYSIS

Table 1 The County’s Net Position

$ Change % Change2019 0 2019 0 2019 0 2019 to 2018 2019 to 2018

Current and Other Assets 183,776$ 171,804$ 28,682$ 16,251$ 212,458$ 188,055$ 24,403$ 12.98 %Capital Assets 114,458 129,427 33,087 27,572 147,545 156,999 (9,454) (6.02)

Total Assets 298,234 301,231 61,769 43,823 360,003 345,054 14,949 4.33

Deferred Outflow of Resources 56,197 65,935 360 429 56,557 66,364 (9,807) (14.78)Total Assets and Deferred Outflow s 354,431 367,166 62,129 44,252 416,560 411,418 5,142 1.25

Current and Other Liabilities 22,611$ 12,001 3,991$ 702 26,602 12,703 13,899 109.42Long-Term Liabilities 383,929 385,821 14,263 13,927 398,192 399,748 (1,556) (0.39)

Total Liabilities 406,540 397,822 18,254 14,629 424,794 412,451 12,343 2.99

Deferred Inflow of Resources 17,960 13,353 151 111 18,111 13,464 4,647 34.51Total Liabilities and Deferred Inflow s 424,500 411,175 18,405 14,740 442,905 425,915 16,990 3.99

Net Position:Net Investment in Capital Assets 97,471 111,633 29,614 23,616 127,085 135,249 (8,164) (6.04)Restricted 117,376 123,419 - - 117,376 123,419 (6,043) (4.90)Unrestricted (284,918) (279,061) 14,109 5,896 (270,809) (273,165) 2,356 (0.86)

Total Net Position (70,071)$ (44,009)$ 43,723$ 29,512$ (26,348)$ (14,497)$ (11,851)$ 81.75

GovernmentalActivities

Business-TypeTotal TotalActivities

(in Thousands) (in Thousands) (in Thousands)

A large portion of the County’s net position, $97,471 in governmental activities and $29,614 in business-type activities, reflects the County’s investment in capital assets (i.e. its land, structures and improvements, infrastructure, and equipment), less any related outstanding debt issued to acquire those assets. The County uses these capital assets to provide a variety of services to citizens. Accordingly, these assets are not available for future spending. Although the County’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Restricted net position of $117,376 for governmental activities is the net position subject to external restrictions on how they may be used.


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The remaining deficit balance of ($284,918) in governmental activities is the result of the County’s unfunded Pension and Other Postemployment Benefits obligations. The following highlights significant factors that affected the governmental and business-type activities and contributed to the decrease in net position:

• Governmental Activities accounted for a decrease in net position of $26,062 primarily due to increased retirement costs.

• Business-Type Activities accounted for an increase in net position of $14,211 primarily due to increased revenues.

The following table presents the activities that accounted for the changes in net position.

Table 2 Changes in Net Position

$ Change % Change2019 0 2019 0 2019 0 2019 to 2018 2019 to 2018

Revenues:Program Revenues:

Charges for Service 45,424$ 41,943$ 23,844$ 8,365$ 69,268$ 50,308$ 18,960 37.69 %Operating Grants and Contribution 287,192 271,803 115 99 287,307 271,902 15,405 5.67Capital Grants and Contributions 4,285 4,593 - - 4,285 4,593 (308) (6.71)

General Revenues:Property Taxes 67,765 63,166 - - 67,765 63,166 4,599 7.28Sales Taxes 5,594 5,499 - - 5,594 5,499 95 1.73Other Taxes and Related Revenues 643 598 - - 643 598 45 7.53Unrestricted Investment Income 9,413 4,887 534 86 9,947 4,973 4,974 100.02Miscellaneous Revenues 9,101 3,837 333 274 9,434 4,111 5,323 129.48

Total Revenues 429,417 396,326 24,826 8,824 454,243 405,150 49,093 12.12

Program Expenses:General Government 43,784 34,696 - - 43,784 34,696 9,088 26.19Public Protection 134,869 129,535 - - 134,869 129,535 5,334 4.12Public Ways and Facilities 42,226 39,026 - - 42,226 39,026 3,200 8.20Health and Sanitation 93,114 88,135 - - 93,114 88,135 4,979 5.65Public Assistance 133,710 131,541 - - 133,710 131,541 2,169 1.65Education 4,145 3,788 - - 4,145 3,788 357 9.42Culture and Recreation Services 335 349 - - 335 349 (14) (4.01)Interest on Long-Term Debt 2,552 2,357 - - 2,552 2,357 195 8.27Sanitation - - 11,359 6,941 11,359 6,941 4,418 63.65

Total Expenses 454,735 429,427 11,359 6,941 466,094 436,368 29,726 6.81

Excess (Deficiency) of Revenues Overv(under) Expenses (25,318) (33,101) 13,467 1,883 (11,851) (31,218) 19,367 (62.04)

Transfers (744) 28 744 (28) - - - -

Change in Net Position (26,062) (33,073) 14,211 1,855 (11,851) (31,218) 19,367 (62.04)

Net Position - Beginning, Restated (44,009) (10,936) 29,512 27,657 (14,497) 16,721 (31,218) (186.70)

Net Position - Ending (70,071)$ (44,009)$ 43,723$ 29,512$ (26,348)$ (14,497)$ (11,851)$ 81.75


Governmental Business-TypeTotalActivities Activities Total


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FINANCIAL ANALYSIS OF GOVERNMENTAL FUNDS

As noted earlier, the County uses fund accounting to ensure and demonstrate compliance with budgetary and legal requirements. Governmental Funds The general government functions are included in the General, Special Revenue, Capital Project, Permanent, and Debt Service Funds. Included in these funds are the special districts governed by the Board of Supervisors. The focus of the County’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the County’s financing requirements. In particular, total fund balance less the nonspendable portion is a useful measure of the County’s net resources available for spending at the end of the fiscal year. At June 30, 2019, the County’s governmental funds reported combined ending fund balances of $141,401. The components of total fund balance are as follows:

• Nonspendable fund balance – $1,029 are amounts that are not spendable in form, or are legally or contractually required to be maintained intact, and are made up of inventories and prepaid expenses.

• Restricted fund balance – $115,560 consists of amounts with constraints put on their use by externally imposed creditors, grantors, contributions, laws, regulations or enabling legislation.

• Committed fund balance – $8,000 has been established by the Board as an emergency reserve.

• Assigned fund balance – $2,799 are amounts intended to be used for specific purposes by the Board of Supervisors.

• Unassigned fund balance – $14,012 represents the residual classification for the County’s General Fund.


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Approximately 99.26% or, $140,371 of the total fund balances is available to meet the County’s current and future needs. With the approval of the Board of Supervisors, County management may allocate a portion of fund balance to a particular function, project, or activity, and may also allocate for purposes beyond the current year, within the constraints applied to the various categories of fund balance. With the exception of the nonspendable portion, fund balances are available for appropriation at any time. The general fund is the main operating fund of the County. The General Fund balance increased by $6,113 or 12% during the current fiscal year due to increased revenues including State and Federal grants. The social services fund has a total fund balance of $7,648 of which $28 is nonspendable and $7,620 is restricted. The overall fund balance decreased by $393 primarily resulting from reduced one-time revenues and increased expenditures. The behavioral health fund has a total fund balance of $11,756 of which $42 is nonspendable and the rest is restricted. The overall fund balance decreased by $6,208 primarily resulting from reduced one-time revenues and increased expenditures. The road fund has a total fund balance of $4,872 of which $4,472 is restricted. The overall fund balance increased by $1,435 primarily resulting from increased funding from SB1 Road Repair & Accountability Act of 2017. The following table presents revenues from various sources as well as reflecting increases or decreases from the prior fiscal year in the governmental funds.

Table 3 Revenues in the Governmental Funds

Amount Percent of Amount Percent of Amount Percent ofRevenue Sources (in Thousands) Total (in Thousands) Total (in Thousands) Total

Taxes 74,001$ 17.4 % 69,263$ 17.3 % 4,738$ 19.1 %Licenses and Permits 4,306 1.0 3,975 1.0 331 1.3Fines, Forfeitures, and Penalties 6,572 1.5 6,267 1.6 305 1.2Use of Money and Property 8,965 2.1 4,848 1.2 4,117 16.6Intergovernmental 289,661 68.3 279,422 70.0 10,239 41.2Charges for Services 34,545 8.1 31,701 7.9 2,844 11.5Other 6,101 1.4 3,837 1.0 2,264 9.1

Total 424,151$ 100.0 399,313$ 100.0 24,838$ 100.0

2019 0 Change

Significant changes for major revenue sources are explained below.

• Taxes – increase due to receipt of property tax backfill from the State. • Use of Money and Property – increase due to unrealized gains, increased interest, royalties and

rents and lease revenues. • Intergovernmental – increase due to increased timing of federal and state payments such as the

Federal Share of Medi-Cal and Prop 172 payments.


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The following table presents expenditures by function compared to prior fiscal year’s amounts in the governmental funds.

Table 4 Expenditures in the Governmental Funds

Amount Percent of Amount Percent of Amount Percent ofFunction (in Thousands) Total (in Thousands) Total (in Thousands) Total

General Government 43,234 10.1 % 33,487$ 8.4 % 9,747$ 32.1 %Public Protection 129,930 30.3 123,331 31.0 6,599 21.7Public Ways and Facilities 23,750 5.5 19,404 4.9 4,346 14.3Health and Santiation 90,751 21.2 85,081 21.4 5,670 18.7PublicAssistance 131,971 30.8 128,617 32.3 3,354 11.0Education 3,903 0.9 3,631 0.9 272 0.9Culture and Recreation 146 - 154 - (8) -Debt Service 4,987 1.2 4,587 1.2 400 1.3

Total 428,672$ 100.0 398,292$ 100.0 30,380$ 100.00

2019 0 Change


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Significant changes for major functions are explained below. • There has been an increase across many of the functions primarily due to increased payroll

costs. • Public Protection – In addition to increased payroll costs, public protection experienced an

increase due to the Camp fire. Proprietary funds. The County’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. These funds include the County’s enterprise fund; and the internal service funds, which are presented in aggregate. The County’s only enterprise fund consists of the Neal Road Landfill Management fund and has a total net position of $43,723. Of this amount, $29,614 is investment in capital assets, and the balance of $14,109 is unrestricted. Overall net position increased by $14,211 due to an increase in revenue for Camp Fire clean up. The County’s internal service funds have an aggregate net position of $5,270. Of this amount, $5,213 is unrestricted GENERAL FUND BUDGETARY HIGHLIGHTS

Differences between the original budget and the final amended budget for revenues were an decrease of $6,049. Aid from Other Government revenues did not reach the final estimate. Differences between the original budget and the final amended budget for expenditures were an increase of $14,215. During the fiscal year, actual revenues were less than budgetary estimates by $617. The primary reason for the decrease was a reduction in Other Governmental revenues. Differences in actual expenditures to budgetary estimates were a decrease of $19,518. The primary reason for the decrease was efficiencies in service and supplies, cost savings in salaries and the reduction in contingency usage.


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CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets The County’s investment in capital assets for its governmental and business-type activities as of June 30, 2019 amounts to $147,544 (net of accumulated depreciation). This investment in capital assets includes land, structures and improvements, equipment, construction-in-progress, and infrastructure. The total decrease in the County’s net investment in capital assets for the current period was 6 percent. Additional information on the County’s capital assets can be found in the Notes to the Financial Statements section of this report, Note 4 – Capital Assets. Key events affecting capital assets during the fiscal year included the following:

A. Infrastructure increased for Business-Type Activities. B. For government-wide financial statement presentation, all depreciable capital assets were

depreciated from acquisition date to the end of the current fiscal year. Fund financial statements record capital asset purchases as expenditures.

Table 5 Capital Assets (Net of Depreciation)

2019 0 2019 0 2019 0

Land 2,840$ 2,840$ 422$ 421$ 3,262$ 3,261$ Structures and Improvements 46,103 46,595 46 46 46,149 46,641 Equipment 14,972 14,715 2,447 1,585 17,419 16,300 Infrastructure 44,092 60,433 26,456 23,275 70,548 83,708 Construction in Progress 6,450 4,845 3,715 2,245 10,165 7,090

Total 114,457$ 129,428$ 33,086$ 27,572$ 147,543$ 157,000$


GovernmentalActivities

Business-TypeActivities Total

Long-Term Debt At June 30, 2019, the County had total long-term debt obligations outstanding of $62,806 consisting of $8,234 in Certificates of Participation, capital lease obligations of $8,752 and bonds payable of $45,820. Business activities had total long-term debt obligations of $3,473 consisting of $1,323 of capital lease obligations and $2,150 of Certificates of Participation. Additional information on the County’s long-term liabilities can be found in the Notes to the Financial Statements section of this report, Note 5 – Long-Term Obligations.


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FISCAL OUTLOOK

The County adopted its fiscal year 2019-2020 Final Budget in the total amount of $616,374, with a General Fund overall emergency reserve level of $8,000. The County will continue to face difficult fiscal challenges in the foreseeable future. The most critical fiscal uncertainty facing the County continues to be the impact on local government resulting from actions of the State of California. The newly elected administration will need to address its own fiscal challenges, including fire safety, the California Department of Water Resources and the continued construction on the Emergency Spillway, the Camp Fire incident and recovery, and health and human services IHSS

REQUEST FOR INFORMATION

This financial report is designed to provide a general overview of the County’s finances for all those with an interest. Questions concerning any of the information presented in this report or requests for additional financial information should be addressed to:

Auditor-Controller 25 County Center Drive Suite 120 Oroville, CA 95965

The County’s Comprehensive Annual Financial Report can also be found at www.buttecounty.net.

http://www.buttecounty.net/

BASIC FINANCIAL STATEMENTS GOVERNMENT-WIDE FINANCIAL STATEMENT

COUNTY OF BUTTE, CALIFORNIA STATEMENT OF NET POSITION

JUNE 30, 2019

See accompanying Notes to Basic Financial Statements. (24)

Primary Government

Governmental Business-TypeASSETS Activities Activities Totals

Cash and Investments 144,421,074$ 19,008,692$ 163,429,766$ Cash and Investments w ith Fiscal Agent 516,462 - 516,462 Imprest Cash 56,725 2,800 59,525 Interest Receivable 819,441 72,450 891,891 Accounts Receivables, Net 2,488,799 9,571,599 12,060,398 Due from Other Government Agencies 31,936,747 - 31,936,747 Prepaid Items 616,593 26,105 642,698 Inventories 273,137 - 273,137 Deposits w ith Others - - - Loans Receivable 2,646,731 - 2,646,731 Capital Assets:

Nondepreciable 9,289,910 4,137,414 13,427,324 Depreciable, Net 105,167,743 28,949,369 134,117,112

Total Assets 298,233,362 61,768,429 360,001,791

DEFERRED OUTFLOWS OF RESOURCESDeferred Pension 56,179,551 359,905 56,539,456 Deferred OPEB 17,483 189 17,672

Total Deferred Outflow s of Resources 56,197,034 360,094 56,557,128

LIABILITIESAccounts Payable 12,716,180 3,884,898 16,601,078 Salaries and Benefits Payable 7,475,010 75,253 7,550,263 Due to Other Governments 21,483 - 21,483 Deposits Payable 17,160 - 17,160 Unearned Revenue 2,273,220 - 2,273,220 Accrued Interest 108,103 30,870 138,973 Long-Term Liabilities:

Due w ithin One Year 23,048,981 1,585,374 24,634,355 Due in More than One Year 67,140,267 10,491,732 77,631,999 OPEB 57,617,345 604,651 58,221,996 Net Pension Liability 236,122,129 1,581,475 237,703,604

Total liabilities 406,539,878 18,254,253 424,794,131

DEFERRED INFLOWS OF RESOURCESDeferred Pension 6,863,086 46,840 6,909,926 Deferred OPEB 11,097,288 104,499 11,201,787

Total Deferred Inflow s of Resources 17,960,374 151,339 18,111,713

NET POSITIONNet Investment in Capital Assets 97,471,299 29,614,244 127,085,543 Restricted for:

Health and Sanitation 26,755,165 - 26,755,165 Public Safety 31,626,432 - 31,626,432 Public Ways and Facilities 5,608,503 - 5,608,503 Social Services 6,260,022 - 6,260,022 Debt Service 13,045,966 - 13,045,966 Capital Projects 4,427,537 - 4,427,537 Other Government Programs 29,652,762 - 29,652,762

Unrestricted (284,917,542) 14,108,687 (270,808,855) Total Net Position (70,069,856)$ 43,722,931$ (26,346,925)$

COUNTY OF BUTTE, CALIFORNIA STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2019


Net (Expenses) Revenues and

Changes in Net PositionProgram Revenues Primary Government

Fees, Fines, and Operating Capital Business-Charges for Grants and Grants and Governmental Type

Expenses Services Contributions Contributions Activities Activities TotalFunctions/ProgramsPRIMARY GOVERNMENT

Governmental Activities:General Government 43,782,832$ 20,884,629$ 21,686,716$ -$ (1,211,487)$ -$ (1,211,487)$ Public Protection 134,869,118 13,512,044 32,931,721 - (88,425,353) - (88,425,353) Public Ways and Facilities 42,226,009 4,521,364 16,393,671 4,284,890 (17,026,084) - (17,026,084) Health and Sanitation 93,113,924 5,851,608 76,408,673 - (10,853,643) - (10,853,643) Public Assistance 133,709,674 540,657 139,600,853 - 6,431,836 - 6,431,836 Education 4,145,220 50,436 169,270 - (3,925,514) - (3,925,514) Recreation and Cultural Services 335,091 62,770 1,038 - (271,283) - (271,283) Debt Service:

Interest on Long-Term Debt 2,551,165 - - - (2,551,165) - (2,551,165) Total Governmental Activities 454,733,033 45,423,508 287,191,942 4,284,890 (117,832,693) - (117,832,693)

Business-Type Activities:Sanitation 11,359,980 23,844,204 115,181 - - 12,599,405 12,599,405

Total Primary Government 466,093,013$ 69,267,712$ 287,307,123$ 4,284,890$ (117,832,693) 12,599,405 (105,233,288)

General Revenues:Taxes:

Property Taxes 67,764,536 - 67,764,536 Sales and Use Taxes 5,593,752 - 5,593,752 Other Taxes and Related Revenues 643,045 - 643,045

Unrestricted Interest and Investment Earnings 9,413,433 534,315 9,947,748 Miscellaneous 9,101,051 333,313 9,434,364

Transfers (743,572) 743,572 - Total General Revenues and Transfers 91,772,245 1,611,200 93,383,445

CHANGE IN NET POSITION (26,060,448) 14,210,605 (11,849,843)

Net Position - Beginning (44,009,408) 29,512,326 (14,497,082)

NET POSITION - ENDING (70,069,856)$ 43,722,931$ (26,346,925)$

BASIC FINANCIAL STATEMENTS FUND FINANCIAL STATEMENT

COUNTY OF BUTTE, CALIFORNIA BALANCE SHEET

GOVERNMENTAL FUNDS JUNE 30, 2019


Behavioral Other TotalGeneral Social Health Road Governmental Governmental

Fund Services Fund Fund Funds FundsASSETS

Cash and Investments 52,127,723$ 542,225$ 12,865,893$ 5,520,142$ 58,934,151$ 129,990,134$ Restricted Assets:

Cash with Fiscal Agent 43,540 - - - 342,591 386,131 Imprest Cash 18,071 - 818 50 9,758 28,697 Due from Other Funds 82,942 - - - - 82,942 Interest Receivable 421,320 7,691 53,083 7,668 258,796 748,558 Accounts Receivable 2,261,307 14,268 89,014 27,167 97,043 2,488,799 Due from Other Governments 8,029,232 10,201,713 10,335,239 1,476,105 1,892,931 31,935,220 Prepaid Items 574,056 - 41,343 - 1,194 616,593 Inventory - - - 273,137 - 273,137 Long-Term Receivables - - - - 2,646,731 2,646,731

Total Assets 63,558,191 10,765,897 23,385,390 7,304,269 64,183,195 169,196,942

LIABILITIESLiabilities:

Accounts Payable 4,190,664 119,774 5,706,546 1,698,314 886,242 12,601,540 Accrued Payroll 3,401,115 1,693,023 1,285,051 316,442 779,358 7,474,989 Due to Other Funds 21,040 - - - 83,385 104,425 Unearned Revenue 934,867 1,294,001 - 37,465 6,887 2,273,220 Deposits from Others 8,680 5,908 1,880 - 692 17,160

Total Liabilities 8,556,366 3,112,706 6,993,477 2,052,221 1,756,564 22,471,334

DEFERRED INFLOWS OF RESOURCESUnavailable Revenue 104,761 4,893 4,636,100 380,494 198,567 5,324,815

Total Deferred Inflows of Resources 104,761 4,893 4,636,100 380,494 198,567 5,324,815

FUND BALANCESNonspendable 675,069 28,028 42,161 273,187 10,952 1,029,397 Restricted 29,537,504 7,620,270 11,713,652 4,471,623 62,217,112 115,560,161 Committed 8,000,000 - - - - 8,000,000 Assigned 2,672,403 - - 126,744 - 2,799,147 Unassigned 14,012,088 - - - - 14,012,088

Total Fund Balances 54,897,064 7,648,298 11,755,813 4,871,554 62,228,064 141,400,793

Total Liabilities, Deferred Inflows of Resources, and Fund Balances 63,558,191$ 10,765,897$ 23,385,390$ 7,304,269$ 64,183,195$ 169,196,942$

COUNTY OF BUTTE, CALIFORNIA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET

TO THE GOVERNMENT-WIDE STATEMENT OF NET POSITION JUNE 30, 2019


Fund Balance - Total Governmental Funds 141,400,793$

Amounts reported for governmental activities in the statementof net position are different because:

Capital assets used in governmental activities are not financialresources and, therefore, are not reported in the governmental funds. These assets consist of:

Land 2,840,002$ Construction in Progress 6,449,908 Infrastructure 596,577,681 Structures and Improvements 76,094,007 Equipment 69,039,049 Less: Accumulated Depreciation (636,600,110)

Total Capital Assets 114,400,537

Some of the County's revenue will be collected after year end, but is notavailable soon enough to pay for the current period's expenditures, and therefore is reported as unavailable revenue in the governmental funds. 5,324,815

Interest payable on long-term debt does not require current financialresources, therefore, interest payable is not reported as a liability in the governmental funds. (108,103)

Internal service funds are used by the County to charge the cost ofinsurance and utilities to individual funds. The assets and liabilities of theinternal service funds are included in the governmental activities in the statement of net position. 5,270,164

Deferred outflows of resources for pension and OPEB in governmentalactivities are not financial resources and therefor, are not reported in thegovernmental funds 56,197,034

Deferred inflows of resources for pension and OPEB in governmentalactivities does not require the use of financial resources and therefor,are not reported in the governmental funds (17,960,374)

Long-term liabilities applicable to the County's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Interest on long-term debt is not accrued ingovernmental funds, but rather is recognized as an expenditure when due. All liabilities are reported in the statement of net position.

Certificates of Participation (8,234,287) Bonds Payable (45,820,000) Capital Leases (8,752,067) Compensated Absences (18,048,894) Net Pension Liability (236,122,129) Other Post-Employment Benefits (57,617,345)

Total Long-Term Liabilities (374,594,722)

Net Position of Governmental Activities (70,069,856)$

COUNTY OF BUTTE, CALIFORNIA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2019


Behavioral Other Total

General Social Health Road Governmental GovernmentalFund Services Fund Fund Funds Funds

REVENUESTaxes 73,039,545$ -$ -$ -$ 961,788$ 74,001,333$ Licenses and Permits 4,060,545 41,148 - 123,016 81,715 4,306,424 Fines, Forfeits, and Penalties 6,213,024 7,524 102,729 8,551 240,197 6,572,025 Use of Money and Property 6,158,611 111,590 507,795 169,503 2,017,439 8,964,938 Aid from Other Governments 54,223,058 131,505,039 61,127,652 17,081,893 25,722,873 289,660,515 Charges for Services 22,731,475 491,985 1,866,540 3,588,073 5,866,461 34,544,534 Other 4,528,726 11,275 25,193 193,280 1,342,577 6,101,051

Total Revenues 170,954,984 132,168,561 63,629,909 21,164,316 36,233,050 424,150,820

EXPENDITURESCurrent:

General Government 37,520,018 - - - 5,713,496 43,233,514 Public Protection 118,499,242 505,277 - - 10,925,115 129,929,634 Public Ways and Facilities - - - 21,767,844 1,982,419 23,750,263 Health and Sanitation - - 70,366,745 - 20,384,188 90,750,933 Public Assistance - 130,224,590 - - 1,746,416 131,971,006 Education 3,902,990 - - - - 3,902,990 Recreation and Cultural Services - - - - 146,466 146,466

Debt Service:Principal 8,737 - - - 2,339,972 2,348,709 Interest 498 - - - 2,638,126 2,638,624

Total Expenditures 159,931,485 130,729,867 70,366,745 21,767,844 45,876,198 428,672,139

EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 11,023,499 1,438,694 (6,736,836) (603,528) (9,643,148) (4,521,319)

OTHER FINANCING SOURCES (USES)Capital Leases - - - 495,702 - 495,702 Transfers in 1,764,384 245,882 976,598 1,742,026 9,362,461 14,091,351 Transfers out (6,674,431) (2,077,133) (447,799) (199,688) (3,200,623) (12,599,674)

Total Other FinancingSources (Uses) (4,910,047) (1,831,251) 528,799 2,038,040 6,161,838 1,987,379

NET CHANGE IN FUND BALANCES 6,113,452 (392,557) (6,208,037) 1,434,512 (3,481,310) (2,533,940)

Fund Balance - Beginning 48,783,612 8,040,855 17,963,850 3,437,042 65,709,374 143,934,733

FUND BALANCE - ENDING 54,897,064$ 7,648,298$ 11,755,813$ 4,871,554$ 62,228,064$ 141,400,793$

COUNTY OF BUTTE, CALIFORNIA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES



Net Change to Fund Balance - Total Governmental Funds (2,533,940)$

Amounts reported for governmental activities in the statement of activitiesare different because:

Revenues in the Statement of Activities that do not provide current financialresources are not reported as revenue in the fund statements. 1,816,842

Governmental funds report capital outlay as expenditures. However, in the statement of activities, the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense.

Capital Outlay Expenditures 10,358,398$ Depreciation Expense Not Reported in Governmental Funds (25,741,927) Capital Assets Acquired Under Capital Leases 495,702 Capital Asset Retirements and Other Capital Asset Adjustments (106,681) (14,994,508)

Debt proceeds provide current financial resources to governmental funds;however, issuing debt increases long-term liabilities in the statement of net position. Repayment of debt principal is an expenditures in the governmental funds, but in the statement of net position the repaymentreduces long-term liabilities.

Principal Payments on Long-term Debt 2,348,706 Capital Lease (495,702) 1,853,004

Under the modified accrual basis of accounting used in the governmentalfunds, expenditures are not recognized for transactions that are normally paid with expendable available financial resources. In the statement of activities, however, which is presented on the accrual basis, expenses and liabilities are reported regardless of when financial resources are available.

Interest Payable 87,462 OPEB and Related Deferred Inflows/Outflows of Resources 663,968 Net pension Liability and Related Deferred Inflows/Outflows of Resources (13,231,375) Compensated Absences (1,149,499) (13,629,444)

Internal service funds are used by the County to charge the costs ofinsurance and utilities to individual funds. The net revenue/expense ofinternal service funds is reported with governmental activities. 1,427,598

Change in Net Position of Governmental Activities (26,060,448)$

COUNTY OF BUTTE, CALIFORNIA STATEMENT OF NET POSITION

PROPRIETARY FUND JUNE 30, 2019


Business-Type

ActivitiesGovernmental

ActivitiesInternal

Neal Road ServiceLandfill Funds

ASSETSCurrent Assets:

Cash and Investments 19,008,692$ 14,458,968$ Cash with Fiscal Agent - 130,331 Imprest Cash 2,800 - Accounts Receivable 9,571,599 - Interest Receivable 72,450 70,883 Due from Other Governments - 1,527 Prepaid Items 26,105 -

Total Current Assets 28,681,646 14,661,709

Noncurrent Assets:Capital Assets:

Nondepreciable:Land 421,932 - Construction in Progress 3,715,482 -

Depreciable:Structures and Improvements 30,914,023 - Equipment 6,104,003 104,561 Accumulated Depreciation (8,068,657) (47,445)

Total Noncurrent Assets 33,086,783 57,116 Total Assets 61,768,429 14,718,825

Deferred Outflows of Resources - Pension 359,905 - Deferred Outflows of Resources - OPEB 189 -

Total Deferred Outflows 360,094 -

COUNTY OF BUTTE, CALIFORNIA STATEMENT OF NET POSITION (CONTINUED)

PROPRIETARY FUND JUNE 30, 2019


Business-Type


ActivitiesInternal


LIABILITIESCurrent Liabilities:

Accounts Payable 3,884,898 114,640 Accrued Salaries and Benefits 75,253 21 Interest Payable 30,870 - Capital Lease 319,045 - COP Payable, Current Portion 1,065,000 - Compensates Absences, Current Portion 201,329 - Claims and Judgments, Current Portion - 2,600,000

Total Current Liabilities 5,576,395 2,714,661

Noncurrent Liabilities:Capital Lease Payable 1,003,494 - COP Payable, Less Current Portion 1,085,000 - Claims and Judgments - 6,734,000 Net OPEB Liability 604,651 - Net Pension Liability 1,581,475 - Landfill Closure/Postclosure Care Costs 8,403,238 -

Total Noncurrent Liabilities 12,677,858 6,734,000 Total Liabilities 18,254,253 9,448,661

Deferred Inflows of Resources - Pension 46,840 - Deferred Inflows of Resources - OPEB 104,499 -

Total Deferred Inflows of Resources 151,339 -

NET POSITIONNet Investment in Capital Assets 29,614,244 57,116 Unrestricted 14,108,687 5,213,048

Total Net Position 43,722,931$ 5,270,164$

COUNTY OF BUTTE, CALIFORNIA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

PROPRIETARY FUND YEAR ENDED JUNE 30, 2019


Business-Type Governmental

Activities ActivitiesInternal


OPERATING REVENUESCharges for Services 23,844,204$ 9,603,665$ Miscellaneous 333,313 -

Total Operating Revenues 24,177,517 9,603,665

OPERATING EXPENSESSalaries and Employee Benefits 1,801,805 289,001 Services and Supplies 7,817,881 4,398,723 Premiums, Claims, and Judgments - 4,696,938 Depreciation and Amortization 907,585 4,651 Landfill Closure/Postclosure Care Costs 777,637 -

Total Operating Expenses 11,304,908 9,389,313

OPERATING INCOME (LOSS) 12,872,609 214,352

NONOPERATING REVENUES (EXPENSES)Intergovernmental 115,181 - Interest Income 534,315 448,495 Interest Expense (55,072) - Other Nonoperating Revenue - 3,000,000

Total Nonoperating Revenues (Expenses) 594,424 3,448,495

NET INCOME BEFORE TRANSFERS 13,467,033 3,662,847

Transfers in 761,630 - Transfers out (18,058) (2,235,249)

CHANGE IN NET POSITION 14,210,605 1,427,598

Net Position - Beginning of Year 29,512,326 3,842,566

NET POSITION - END OF YEAR 43,722,931$ 5,270,164$

COUNTY OF BUTTE, CALIFORNIA STATEMENT OF CASH FLOWS



Business-Type


ActivitiesInternalService

Landfill FundsCASH FLOWS FROM OPERATING ACTIVITIES

Cash Received from Customers 15,093,436$ 9,615,683$ Cash Paid to Suppliers for Goods and Services (4,599,037) (8,672,409) Cash Paid to Employees for Services (1,575,083) (288,974)

Net Cash Provided (Used) by Operating Activities 8,919,316 654,300

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIESGrant Proceeds Not Restricted for Capital Purposes 115,181 - Payments from Other County Funds 761,630 - Payments to Other County Funds (18,058) (2,235,249) Insurance Proceeds - 3,000,000

Net Cash Provided (Used) by Noncapital Financing Activities 858,753 764,751

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES

Payments Related to the Acquisition of Capital Assets (5,596,820) (29,550) Principal Payment on Long-Term Debt (1,309,000) - Interest Paid (59,852) -

Net Cash Provided (Used) by Capital and Related Financing Activities (6,965,672) (29,550)

CASH FLOWS FROM INVESTING ACTIVITIESInterest Received 525,669 428,488

NET DECREASE IN CASH AND CASH EQUIVALENTS 3,338,066 1,817,989

Cash and Cash Equivalents - Beginning 15,673,426 12,771,310

CASH AND CASH EQUIVALENTS - ENDING 19,011,492$ 14,589,299$

RECONCILIATION OF CASH AND CASH EQUIVALENTS TO STATEMENT OF NET POSITION

Cash and Investments 19,008,692$ 14,458,968$ Cash with Fiscal Agent - 130,331 Imprest Cash 2,800 -

Total 19,011,492$ 14,589,299$

COUNTY OF BUTTE, CALIFORNIA STATEMENT OF CASH FLOWS (CONTINUED)



Business-Type


ActivitiesInternalService

Landfill FundsRECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES

Operating Income (Loss) 12,872,609$ 214,352$ Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities:

Depreciation 907,585 4,651 Changes in Assets and Liabilities:

(Increase) Decrease in:Accounts Receivable (9,084,081) 12,018

Increase (Decrease) in:Accounts Payable 3,218,843 (165,721) Accrued Salaries 75,253 - Compensated Absences 65,941 - Claims and Judgements - 589,000 Net Pension Liability and Related Deferrals 91,342 - Net OPEB Liability and Related Deferrals (5,814) - Landfill Closure/Post-Closure Cost 777,638 -

Net Cash Provided (Used) by Operating Activities 8,919,316$ 654,300$

COUNTY OF BUTTE, CALIFORNIA STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS JUNE 30, 2019


Investment Agency

Trust FundsASSETS

Cash and investments 405,626,573$ 47,476,075$ Interest Receivable 1,311,517 307,682 Due from Other Funds - 104,425 Property Tax Receivable - 11,573,258

Total Assets 406,938,090 59,461,440

LIABILITIESDue to Other Funds - 82,942 Due to Other Governments - 1,839,321 Agency Funds Held for Others - 57,539,177

Total Liabilities - 59,461,440$

NET ASSETSHeld in Trust for Pool Participants 406,938,090

Total Net Position 406,938,090

Total Liabilities and Net Position 406,938,090$

COUNTY OF BUTTE, CALIFORNIA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

INVESTMENT TRUST FUNDS YEAR ENDED JUNE 30, 2019


Additions:

Contributions to Investment Pool 700,374,365$ Interest and Investment Income 4,959,394

Total Additions 705,333,759

Deductions:Distributions from Investment Pool 653,402,360

CHANGE IN NET POSITION 51,931,399

Net Position - Beginning 355,006,691

NET POSITION - ENDING 406,938,090$

BASIC FINANCIAL STATEMENTS NOTES TO BASIC FINANCIAL STATEMENTS

COUNTY OF BUTTE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. The Financial Reporting Entity

The County of Butte (County), which was incorporated as a County in 1850 as one of the State’s original 27 counties, is a legal subdivision of the State of California charged with governmental powers. The County’s powers are exercised through a Board of Supervisors, which, as the governing body of the County, is responsible for the legislative and executive control of the County. As required by accounting principles generally accepted in the United States of America, these financial statements present the government and its component units; legally separate entities for which the County is considered to be financially accountable. Financial accountability is demonstrated by the County Board of Supervisors acting as the governing board for each of the component units. In evaluating how to define the County for financial reporting purposes, management has considered all potential component units. The decision to include a potential component unit in the reporting entity was made by applying the criteria set forth in Governmental Accounting Standards Board (GASB) Statement No. 14, The Financial Reporting Entity. Blended component units, although legally separate entities are, in substance, part of the County’s operations: therefore data from these units are combined with data of the primary government. Financial accountability is primarily demonstrated by the County’s Board acting as, or appointing, the governing board for each of the component units and its ability to impose its will. Because of their relationship with the County and the nature of their operations, component units are, in substance, part of the County’s operations and, accordingly, the activities of these component units are combined, or blended with the activities of the County for purposes of reporting in the accompanying basic financial statements. Each blended component unit has a June 30, 2019 fiscal year-end. Discretely presented component units, also legally separate entities are separately stated from the County in the financial report. These component units are financially accountable to the County but for all practical purposes, function on their own. Based on the criteria established by GASB 14, as amended by GASB Statement No. 39, the reporting entity also includes the following blended component units, which are Special Districts under control of the Board of Supervisors. The following County Service Areas and Permanent Road Divisions are blended and included in the reporting entity because the component unit’s board is the same as the board of the County and 2) County management has operational responsibility for the agency.


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County Service Area (CSA) – Drainage CSA #4 Sierra Del Oro CSA #23 Pleasant Valley Drainage CSA #24 Chico-Mud Creek Drainage CSA #25 Shasta Union Drainage CSA #47 East and Guynn CSA #76 Quail Run CSA #79 Big Chico Creek Estates (Zones 1-2) CSA #87 Keefer Road/Rock Creek Drainage CSA #90 Southgate Acres Subdivision (Zones 1-3) CSA #95 Copley Acres Subdivision CSA #96 Silvertree Subdivision CSA #97 Stoney Brook Estates Subdivision CSA #98 Oro Monte Estates Subdivision CSA #101 Carriage Estates Subdivision CSA #102 Meadowlark Acres Subdivision CSA #116 Pistachio Grove Estates Subdivision CSA #119 South Fork Estates Subdivision CSA #125 Willow Bend Subdivision CSA #128 Wildflower Estates Subdivision CSA #129 Orchard House Estates CSA #131 Walnut Manor CSA #135 Keefer Creek Estates (Zones 1-2) CSA #149 Biggers Glen Subdivision CSA #158 Ishi Valley Estates/Vineyard Grove Estates CSA #163 Thorntree Industrial Park CSA #165 Justin Manor/Martin Subdivision CSA #169 Pheasant Landing Subdivision CSA #172 Autum Park Subdivision CSA #173 Melrose Estates CSA #174 Durham Land Estates Subdivision CSA #176 Pheasant Landing Estates, Unit 3 CSA #177 Blossom Estates CSA #178 Twin Palms Subdivision CSA #179 Chambers and Speedway Subdivision CSA #180 Redhawk Ranch Subdivision CSA #181 Palm Crest Village (Zone 1) CSA #183 Red Earth Estates Subdivision

CSA – Fire Protection CSA #90 Southgate Acres Subdivision (Zones 2-3) CSA #128 Wildflower Estates Subdivision CSA #137 Durham Dayton Industrial Partners CSA #149 Biggers Glen Subdivision CSA #163 Thorntree Industrial Park CSA #165 Justin Manor/Martin Subdivision CSA #169 Pheasant Landing Subdivision CSA #172 Autum Park Subdivision CSA #176 Pheasant Landing Estates, Unit 3 CSA #178 Twin Palms Subdivision CSA #179 Chambers and Speedway Subdivision CSA #180 Redhawk Ranch Subdivision CSA #181 Palm Crest Village CSA #183 Red Earth Estates Subdivision

CSA –Sewer CSA #21 Oakridge (Zones 1-4) CSA #82 Stirling City Sewer District CSA #94 Sycamore Valley Subdivision CSA #135 Keefer Creek Estates (Zones 2 & 4) CSA #141 Mountain Oaks Subdivision CSA #169 Pheasant Landing Subdivision CSA –Street Lighting CSA #4 Sierra Del Oro CSA #11 Durham CSA #12 Stirling City CSA #14 East Chico


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CSA #16 West Chico CSA #17 South Oroville Las Plumas Park (Zone 1) CSA #27 Richvale CSA #33 Oro-Wyandotte CSA #36 Glen Haven Subdivision CSA #47 East and Guynn. CSA #62 Rancho De Thunder Subdivision #1 CSA #67 Vista Del Cerro Subdivision CSA #68 Crestwood Subdivision CSA #69 Lindo Gardens CSA #71 Joshua Tree Subdivision #2 CSA #75 North Park Subdivision Unit 2 CSA #76 Quail Run CSA #78 Woodside Subdivision CSA #79 Big Chico Creek Estates (Zone 2) CSA #85 Carriage Manor Subdivision CSA #92 Rosewood Subdivision CSA #94 Sycamore Valley Subdivision CSA #96 Silvertree Subdivision CSA #97 Stoney Brook Estates Subdivision CSA #101 Carriage Estates Subdivision CSA #102 Meadowlark Acres Subdivision CSA #103 Morris Subdivision CSA #116 Pistachio Grove Estates Subdivision CSA #119 South Fork Estates Subdivision CSA #125 Willow Bend Subdivision CSA #128 Wildflower Estates Subdivision CSA #129 Orchard House Estates CSA #131 Walnut Manor CSA #135 Keefer Creek Estates (Zones 1-2) CSA #149 Biggers Glen Subdivision CSA #158 Ishi Valley Estates/Vineyard Grove Estates CSA #161 Mulberry Subdivision CSA #163 Thorntree Industrial Park CSA #165 Justin Manor/Martin Subdivision CSA #169 Pheasant Landing Subdivision CSA #172 Autum Park Subdivision CSA #173 Melrose Estates CSA #174 Durham Land Estates Subdivision CSA #176 Pheasant Landing Estates, Unit 3 CSA #177 Blossom Estates CSA #178 Twin Palms Subdivision CSA #179 Chambers and Speedway Subdivision CSA #180 Redhawk Ranch Subdivision CSA #181 Palm Crest Village (Zone 1) CSA #183 Red Earth Estates Subdivision CSA –Swimming Pool CSA #31 Biggs Swimming Pool CSA #34 Gridley Swimming Pool CSA –Water Quality CSA #4 Sierra Del Oro CSA #114 Chico Urban Area Nitrate CSA –Other CSA #17 South Oroville Las Plumas Park (Zone 2) - Alley Maintenance CSA #37 Gridley-Biggs Ambulance - Ambulance

CSA #149 Biggers Glen Subdivision - Police & Snow Removal CSA #164 Butte County Animal Control - Animal Control CSA #172 Autum Park Subdivision - Landscape Maintenance CSA #179 Chambers and Speedway Subdivision - Roadway Facilities


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PRD – Permanent Road Divisions Tonriha Subdivision – Street Lighting, Drainage, and Road Maintenance Siskiyou Grove Estate – Street Lighting, Drainage, and Road Maintenance The County has created the Public Facilities Financing Corporation (Corporation) for the purposes of facilitating the financing of public projects within the County. The Board of Supervisors appoints the governing board of the Corporation and it is responsible for the fiscal and administrative activities of the entity. For financial reporting purposes capitalized leases between the County and the Corporation have been eliminated and the financial data of the entity has been included within the County’s reporting entity and is accounted for in a debt service fund. Excluded from the Reporting Entity Local Board Governed Districts and School Districts: These potential component units have been excluded from the reporting entity. They are legally separate primary governmental units. The financial reporting for these governmental entities, which are independent of the County, are limited to the total amount for cash and investments and the related fiduciary responsibilities of the County for disbursement of these assets. Activities of school districts and local board governed districts are administered by boards which are separately elected and which are independent of the County Board of Supervisors. The following local board governed districts and school districts have been excluded from the County’s financial statements: Protection to Person and Property Cemetery El Medio Fire District Bangor Cemetery Gridley-Biggs Cemetery Recreation Kimshew Cemetery Oroville Cemetery Chico Area Recreation & Park Paradise Cemetery Durham Recreation & Park Pine Creek Cemetery Feather River Recreation & Park Thompson Flat Cemetery Paradise Recreation & Park Upham Cemetery Richvale Recreation & Park Health & Sanitation Drainage Butte County Mosquito Abatement Butte Creek Drainage Durham Mosquito Abatement Drainage District #1 Oroville Mosquito Abatement Drainage District #2 Richvale Sanitary Operating Drainage District #100 Drainage District #200


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Other Districts Butte County Association of Governments Buzztail Community Services Butte County Resource Conservation Children’s and Families Commission Butte County Office of Education Reclamation District #833 Representing County School Districts Rock Creek Reclamation District Butte County Fair Sacramento River Reclamation District Certain entities have separate elected boards and provide services to residents, generally within the geographic boundaries of the County. In addition, these entities are excluded from the reporting entity because they are not financially accountable to the County.

B. Basis of Presentation

Government-Wide Financial Statements

While separate government-wide and fund financial statements are presented, they are interrelated. The governmental activities column incorporates data from governmental funds and internal service funds, while business-type activities incorporate data from the government’s enterprise funds. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. The statement of activities presents a comparison between program expenses and program revenues for each segment of the business-type activities of the County and for each function of the County’s governmental activities. Program expenses include direct expenses, which are clearly identifiable with a specific function, and allocated indirect expenses. Program revenues include 1) charges paid by the recipients of goods or services offered by the programs and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented instead as general revenues. The County has no discretely presented component units to present at this time but will continue to assess any potential component units. While they may not be considered as a major component unit, they would nevertheless be shown in a separate column in the government-wide financial statements. Fund Financial Statements The fund financial statements provide information about the government’s funds, including its fiduciary funds and blended component units. Separate statements for each fund category—governmental, proprietary, and fiduciary—are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. Major individual governmental and enterprise funds are reported as separate columns in the fund financial statements.


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Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operation. The principal operating revenues of the County’s enterprise funds and internal services funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administration expenses, and depreciation of capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

The County reports the following major governmental funds:

• The General Fund is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the County that are not accounted for through other funds. For the County, the General Fund includes such activities as public protection, public ways and facilities, health and sanitation, public assistance, education and recreation services.

• The Social Services Fund was established to account for the activities of the Butte County Department of Employment and Social Services. The department administers the CalWORKs program, Adult and Children’s Protection Services and various other state, federal, and local assistance programs that are funded primarily by state and federal grants.

• The Behavioral Health Fund was established to account for the activities of the

Butte County Department of Behavioral Health. The department provides a comprehensive continuum of services meeting community needs related to mental health and substance abuse problems. Revenue sources are primarily sales tax revenue and state grants.

• The Road Fund provides for planning, design, construction, maintenance, and

administration of County transportation planning activities. Revenues consist primarily of the County’s share of state highway user taxes and are supplemented by federal funds.

The County reports the following major enterprise fund:

• The Landfill Fund was established to account for the County’s costs of providing landfill and related waste disposal services to the citizens of Butte County in both the unincorporated and incorporated areas of the County.


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The County reports the following additional fund types:

• Internal Service Funds account for the County’s risk management, unemployment insurance, and utilities on a cost-reimbursement basis. Internal Service Funds are presented in summary form as part of the proprietary fund financial statements. In the government-wide financial statements, the changes in net position at the end of the fiscal year, as presented in the statements of activities, were allocated to the user functions of the governmental activities, to reflect the entire activity for the year. Since the predominant users of the internal services are the County’s governmental activities, the asset and liability balances of the internal service funds are consolidated into the governmental activities column at the government-wide level.

• The Investment Trust Fund accounts for the assets of legally separate entities

that deposit cash with the County Treasurer in an investment pool, which commingles resources in the investment portfolio for the benefit of all participants. These entities include school and community college districts, other special districts governed by local boards, regional boards and authorities and pass through funds for tax collections for cities.

• The Agency Funds are custodial in nature and do not involve measurement of

the results of operations. Such funds have no equity accounts since all assets are due to individuals or entities at some future time. These funds account for assets held by the County as an agent for other government units. These units include Butte County SB-325 and SB-620, and other special districts governed by local boards, regional boards and authorities, and pass through funds for tax collections for cities.

C. Measurement Focus and Basis of Accounting

The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The Basis of accounting indicates the timing of transactions or events for recognition in the financial statements. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the fiscal year for which the taxes are levied. Operating revenues are those that result from providing services. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses, and depreciation of capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Grants and similar items are recognized in the fiscal year in which all eligible requirements have been satisfied.


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The governmental fund financial statements are reported using the current financial resources measurement focus and modified accrual basis of accounting. Under this method, revenues are recognized when they become both measurable and available. “Measurable” means the amount of the transaction can be determined and “available” means that revenues are collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Property tax revenues are recognized in the current year if they are collected within 60 days of fiscal year-end. For all other revenues, the County considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Revenues not considered available are recorded as deferred inflows. The County’s other primary revenue sources: investment income, intergovernmental revenues, and charges for services have been treated as “susceptible to accrual” under the modified accrual basis. Licenses and permits, fines, forfeitures and penalties, and other revenue are not considered “susceptible to accrual” under the modified accrual basis and are recorded as revenues when received. Expenditures generally are recorded when a liability is incurred. However, debt service expenditures, as well as expenditures related to compensated absences and claims and Judgments, are recorded when payment is due. When both restricted and unrestricted net positions are available, unrestricted resources are used only after the restricted resources are depleted.

D. Cash and Cash Equivalents

The County maintains a Cash and Investment Pool that holds deposits for all County funds, Butte County Schools and Special Districts, and certain other local agency depositors. For some entities, participation is mandatory. Some of the outside agencies under mandatory participation in the Investment Pool are Superior Court, Autonomous Special Districts, Schools, and Community College Districts. Other local agencies may qualify to participate on a voluntary basis, such as the Butte County Association of Governments, the Natural Resource Conservation Service, Thermalito Water & Power and the Butte County Fair, to name a few. The Pool is not registered as an investment company with the Securities and Exchange Commission (SEC) nor is it an SEC Rule 2a7-like pool. The Treasurer’s Statement of Investment Policy is prepared in accordance with California Government Code, and approved annually by the County’s Treasury Oversight Committee, and the Board of Supervisors. State statutes and the County’s investment policy authorize the County Treasurer to invest in instruments described in California Government Code Section 53601 and 53635, including but not limited to: U.S. Government Treasury and Agency Securities, bankers’ acceptances, commercial paper, corporate bonds and notes, repurchase agreements and the State Treasurer’s Local Agency Investment Fund (LAIF). In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and External Investment Pools, investments held by the County Treasurer are stated at fair value.


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The fair value of investments in the Pool is determined monthly based upon quoted market prices. The County has not provided nor obtained any legally binding guarantees during the fiscal year ended June 30, 2019 to support the values of shares in the Pool. However, management believes that the investments in the Pool are of high quality and that the risk of participation in the Pool is negligible. The Pool is subject to oversight by the Treasury Oversight Committee, as recommended by the California Debt and Investment Advisory Commission. The Pool values participants’ shares on an amortized cost basis. Specifically, the Pool distributes income to participants quarterly based on their relative participation during the month, which is calculated based on (1) realized investment gains and losses computed on an amortized cost basis, (2) interest income based on stated rates (both paid and accrued), (3) amortization of discounts and premiums on a straight-line basis, and (4) investment and administrative expenses. This method differs from the fair value method used to value investments in these financial statements because the amortized cost method is not designed to distribute to participants all unrealized gains and losses in the fair value of the Pool’s investments. Investment income related to investments reported in certain funds may be assigned to other funds based upon legal or contractual provisions. For purposes of the accompanying statement of cash flows – Proprietary Funds, the County considers all highly liquid investments with a maturity of three months or less when purchased, and their equity in the County Treasurer’s investment pool, to be cash equivalents.

E. Inventories and Prepaid Items

Inventories are valued at cost, which is determined on a first-in, first-out basis, and consist primarily of expendable supplies held for consumption. The cost is recorded as expenditures when items are consumed, rather than when purchased. Payments made for services that will benefit future accounting periods are recorded as prepaid items. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased. The inventories and prepaid items recorded in the governmental funds do not reflect current appropriable resources and, thus, an equivalent portion of fund balance is reported as nonspendable.

F. Property Taxes

Property taxes attach as an enforceable lien on January 1. Secured taxes are levied on July 1 and are payable in two installments due by December 10 and April 10. All general property taxes are then allocated by the County Auditor-Controller’s Office to the various taxing entities per the legislation-implementing Proposition 13. The method of allocation used by the County is subject to review by the State of California.


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Alternative Method of Distribution of Tax Levies The County utilizes the alternative method of property tax distribution, whereby the County, through the legally required Tax Resource Agency Fund’ purchases the current secured unpaid taxes remaining at year-end from participating agencies. In return, the Tax Resource Agency Fund records a tax receivable and receives the delinquent secured taxes. The Tax Loss Reserve Agency Fund receives delinquent penalties and redemption interest accruing to delinquent collections related to participating agencies. The participating agencies, including the County, the special districts, and the school districts, in turn, receive their full tax distribution with no liability for uncollected taxes to the Tax Resource Agency Fund. Therefore, for participating agencies, revenue is measurable and available and is recorded in the period the payment of current secured unpaid taxes is received. Alternative Method of Distribution of Tax Levies The County is required to create a tax loss reserve fund (an agency fund) under one of two alternative methods: 1) 1% of the total amount of taxes and assessments levied on the secured roll for the year or 2) 25% of the total delinquent secured taxes and assessments as calculated at the end of the fiscal year. The County is using 3% of the total amount of taxes and assessments levied on the secured roll for the year to establish its tax loss reserve.

G. Loans Receivable

Loans receivable relate to the Housing and Community Development Program funded by federal and state monies. Loans receivable are collateralized by deeds of trust. Proceeds from the collection of the loans receivable and resale of assets held for sale are restricted by the terms of the grant and, accordingly, are reported as a nonspendable component of fund balance since they do not constitute available spendable resources. No amount has been provided as an allowance for doubtful accounts because all material amounts are collectible.

H. Capital Assets

Capital assets (including infrastructure) are recorded at historical cost or estimated cost if actual historical cost is not available. Contributed capital assets such as works of art of similar items, and capital assets received in a service arrangement should be reported at acquisition value rather than fair value. Capital assets include public domain (infrastructure) general capital assets consisting of certain improvements including roads, bridges, water/sewer, lighting system, drainage systems, and flood control. The County defines capital assets as assets with an initial, individual cost of more than $25,000 for machinery, equipment and computer software; more than $125,000 for infrastructure, buildings, and land improvements; and an estimated useful life in excess of one year. Capital assets used in operations are depreciated or amortized (assets under capital leases) using the straight-line method over the lesser of the capital lease period or their estimated useful lives in the government-wide statements and the proprietary funds.


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The estimated useful lives are as follows: Buildings and Building Improvements 30 to 50 Years Infrastructure 30 to 50 Years Land Improvements 20 Years Equipment 5 to 20 Years Vehicles 5 to 15 Years Computer Software 5 Years The County has five networks of infrastructure assets – roads, water/sewer, lighting, drainage, and flood control. Infrastructure has been included in the County’s capital assets at historical cost and net of related depreciation.

I. Deferred outflows/inflows of resources

In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The County reports deferred outflows of resources for both pension and OPEB activities. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period (s) and so will not be recognized as an inflow of resources (revenue) until that time. The County has deferred inflows of resources related to unavailable revenues reported under the modified actual basis of accounting in the governmental funds balance sheet and related to pensions and OPEB in its proprietary and government-wide statements. The governmental funds report unavailable revenues from amounts due from the Federal and State, and other sources as appropriate. These amounts are deferred and recognized as revenues in the period the amounts become available.

J. Compensated Absences

The liability for compensated absences reported in the government-wide and proprietary fund statements consists of unpaid, accumulated leave balances. The liability has been calculated using the vesting method, in which leave amounts for both employees who currently are eligible to receive termination payments and other employees who are expected to become eligible in the future to receive such payments upon termination are included.


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K. Interfund Receivables and Payables

Interfund transactions are reflected as either loans, services provided, reimbursements, or transfers. Loans are reported as receivables and payables as appropriate, are subject to elimination upon consolidation and are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as “internal balances”. Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not available financial resources. All interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government-wide presentation.

L. Use of Estimates

The preparation of basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

M. Presentation of Financial Information Related to County Fiduciary Responsibilities

The basic financial statements also include an Investment Trust fund to account for cash and investments held by the County Treasurer for numerous self-governed school and special districts. The financial reporting for these governmental entities, which are independent of the County, is limited to the total amount of cash and investments and other assets, and the related fiduciary responsibility of the County for disbursement of these assets. School and special district boards that are separately elected, and that are independent of the County Board of Supervisors, administer activities of the school districts and special districts. The County Auditor-Controller makes disbursements upon the request of the responsible self-governed special district officers. The Board has no effective authority to govern, manage, approve budgets, assume financial accountability, establish revenue limits, or appropriate surplus funds available in these entities. Therefore, these entities are fiscally independent of the County. Five cities and numerous self-governed special districts provide services to the residents of the County. The operations of these entities have been excluded from the basic financial statements since each entity conducts its own day-to-day operations and is controlled by its own governing board.


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N. Net Position

The government-wide financial statements and proprietary fund financial statements utilize a net position presentation. Net position is categorized as net investment in capital assets, restricted, or unrestricted. Net investment in Capital Assets – This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of these assets reduce the balance in this category. Restricted– This category presents external restrictions imposed by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or legislation. Unrestricted– This category represents net position of the County, not restricted for any project or other purpose.

O. Fund Balance

In the fund financial statements, governmental funds report fund balance as nonspendable, restricted, committed, assigned, or unassigned based primarily on the extent to which the County is bound to honor constraints on how specific amounts can be spent.

• Nonspendable Fund Balance – amounts that are not in a spendable form or are legally or contractually required to be maintained intact (such as inventories or prepaid amounts).

• Restricted Fund Balance – amounts that can be spent only for specific purposes

stipulated by external parties (such as creditors, grant providers or contributors) or by law.

• Committed Fund Balance – amounts that can be used only for the specific

purpose determined by a resolution approved by the Board of Supervisors. Commitments remain binding unless changed or lifted only by the Board of Supervisors taking the same formal action that imposed the constraint originally. The formal action must occur prior to the end of the reporting period. The amount which will be subject to the constraint may be determined in the subsequent period.

• Assigned Fund Balance – amounts intended to be used by the government entity

for specific purposes that are neither restricted nor committed. Intent can be expressed by the Board of Supervisors or by an official or body to which the Board delegates the authority. Assigned fund balance can also be used to eliminate a projected budgetary deficit in the subsequent year’s budget.


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• Unassigned Fund Balance – the residual classification for the General Fund,

including all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than the general fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

• Fund Balance Policy – based on the County’s policy regarding the fund balance classification that was approved by the Board of Supervisors, when both restricted and unrestricted funds are available for expenditure, restricted funds should be spent first unless legal requirements disallow it. When expenditures are incurred for purposes for which amounts in any unrestricted fund balance classification could be used, committed funds are to be spent first, assigned funds second, and unassigned funds last. Only the Board of Supervisors has the authority to assign unassigned fund balance amounts where the County’s intent is for those amounts to be used for specific purposes.

P. Pensions

For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plan and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

NOTE 2 CASH AND INVESTMENTS

Cash and investments as of June 30, 2019 are classified in the accompanying financial statements as follows: Statement of Net Position

Primary Government:Cash and Investments 163,429,766$ Cash with Fiscal Agents 516,462 Imprest Cash 59,525

Fiduciary Funds:Cash and Investments 453,102,648

Total Cash and Investments 617,108,401$


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Cash and investments as of June 30, 2019 consisted of the following: Cash on Hand 145,403$ Deposits with Financial Institutions 27,747,873 Investments 621,093,836 Outstanding Warrants (31,878,711)

Total Cash and Investments 617,108,401$

Investments Authorized by the California Government Code and the County’s Investment Policy The table below identifies the investment types that are authorized for the County by the California Government Code (or the County’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the County’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the County, rather than the general provisions of the California Government Code or the County’s investment policy.

Maximum MaximumMaximum Percentage Investment

Authorized Investment Type Maturity of Portfolio in One Issuer

Local Agency Bonds 5 Years None NoneU.S. Treasury Obligations 5 Years None NoneU.S. Agency Securities 5 Years None NoneBanker’s Acceptances 180 Days 40% 30%Commercial Paper 270 Days 25% 10%Negotiable Certificates of Deposit 5 Years 30% NoneRepurchase Agreements 1 year 20% NoneReverse Repurchase Agreements 92 Days 20% of Base Value NoneMedium-Term Notes 5 Years 30% NoneMoney Market Mutual Funds N/A 20% 10%Mortgage Pass-Through Securities 5 Years 20% NoneCounty Pooled Investment Funds N/A None NoneLocal Agency Investment Fund (LAIF) N/A None NoneJPA Pools (Other Investment Pools) N/A None None Excluding amounts held by bond trustee that are not subject to California Government Code restrictions.


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Investments Authorized by Debt Agreements Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the County’s investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Maximum MaximumMaximum Percentage Investment

Authorized Investment Type Maturity Allowed in One Issuer

U.S. Treasury Obligations None None NoneU.S. Agency Securities None None NoneBanker’s Acceptances 180 Days None NoneCommercial Paper 270 Days None NoneMoney Market Mutual Funds N/A None NoneInvestment Contracts 30 Years None NoneLocal Agency Investment Fund (LAIF) None None NoneButte County Treasurer’s Pooled Portfolio None None None


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Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the County manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. Information about the sensitivity of the fair values of the County’s investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the County’s investments by maturity:

Total Less than One to Tw o to Three to Four toInvestment Type Fair Value One Year Tw o Years Three Years Four Years Five Years

With Treasurer:Certif icate of Deposit 11,251,637$ 1,251,637$ 2,750,000$ 3,250,000$ 2,500,000$ 1,500,000$ Corporate Notes 115,018,173 19,128,103 22,834,735 24,990,592 22,386,038 25,678,705 Municipal Bonds 46,158,213 18,569,651 9,965,050 5,235,932 2,118,980 10,268,600 U.S. Agency 143,462,658 30,121,661 27,916,086 29,466,076 5,005,765 50,953,070 U.S. Treasury Note 59,118,864 8,957,149 9,922,460 9,948,630 25,089,650 5,200,975 Local Government Investment Pool 245,567,829 245,567,829 - - - -

Total w ith Treasurer 620,577,374 323,596,030 73,388,331 72,891,230 57,100,433 93,601,350

With Fiscal Agents:Investment under Mgmt of Trustees 342,591 342,591 - - - - Discovery Benefits 43,540 43,540 - - - - York Fiscal Agent 130,331 130,331 - - - -

Total w ith Fiscal Agents 516,462 516,462 - - - -

Total Investments 621,093,836$ 324,112,492$ 73,388,331$ 72,891,230$ 57,100,433$ 93,601,350$

Remaining Maturity by Fair Value


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Credit Risk Credit risk exists when there is the possibly that the issuer or other counterparty to an investment may be unable to fulfill its obligations. To mitigate this risk, the County's Investment Policy, which is more restrictive than the California Government Code, places a minimum standard on the rating of investments held in the Pool. Investments in securities other than those guaranteed by the U.S. Treasury or government sponsored enterprises must have a credit rating of no less than AA-. Securities that are fully guaranteed as to payment by an agency, or government sponsored enterprise of the U.S. Government, were rated AA- or better by nationally recognized statistical-rating organizations. As of June 30, 2019 the County invested in primarily high quality investments as shown below:

S&P Rating

Percentage of Investment

Portfolio Not Rated** 43.79%S&P-AA 1.94%S&P-AA- 5.25%S&P-AA+ 41.64%S&P-AAA 7.38%

Total 100.00%

** The portion of the portfolio that is "Not Rated" represents the following: $189,428,448 Local Government Investment Pool (LAIF) $14,995,975 US Agency Bonds with Federal Agriculture Mortgage Corporation which are not rated by Moody's or S&P $11,251,637 Negotiable Certificates of Deposits insured by the FDIC $196,025 Investments under Mgnt of Trustees insured by FDIC

Concentration of Credit Risk The investment policy of the County contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of total County investments are as follows:

ReportedIssuer Investment Type % of Portfolio Amount

International Bank Recon & Develop Corporate Supranationals 11.82 73,323,477$ Federal Farm Credit Bank Federal Agency Securities 6.44 39,947,221 Federal Home Loan Bank Federal Agency Securities 6.5 40,348,511


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Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the County’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure County deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. It is the County’s practice to disallow first trust deed mortgage notes as collateral for the County’s secured deposits. Investment in State Investment Pool The County is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. This fund is not registered with the Securities and Exchange Commission as an investment company, but is required to invest according to California State Code. Participants in the pool include voluntary and involuntary participants, such as special districts and school districts for which there are legal provisions regarding their investments. The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of five members as designated by state statute. The fair value of the County’s investment in this pool is reported in the accompanying financial statements at amounts based upon the County’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.


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Fair Value Measurements GASB Statement 72, Fair Value Measurements and Application, sets for the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under GASB 72 are described as follows:

Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the County has the ability to access. Level 2 – Inputs to the valuation methodology include:

• Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in inactive markets; • Inputs other than quoted prices that are observable for the asset or liability; • Inputs that are derived principally from or corroborated by observable market

data by correlation or other means. Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs reflect the County’s own assumptions about the inputs market participants would use in pricing the asset or liability (including assumptions about risk). Unobservable inputs are developed based on the best information available in the circumstances and may include the County’s own data.

The asset’s level within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The determination of what constitutes observable requires judgment by the County’s management. County management considers observable data to be that market data which is readily available, regularly distributed or updated, reliable, and verifiable not proprietary, and provided by multiple independent sources that are actively involved in the relevant market. The categorization of an investment within the hierarchy is based upon the relative observability of the inputs to its fair value measurement and does not necessarily correspond to County management’s perceived risk of that investment.


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Fair Value Measurements (Continued) The following is a description of the valuation methods and assumptions used by the County to estimate the fair value of its investments. There have been no changes in the methods and assumptions used for the previous year-end. The methods described may produce a fair value calculation that may not be indicative of the realizable value or reflective of future fair values. County management believes its valuation methods are appropriate and consistent with other market participants. The use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. When available, quoted prices are used to determine fair value. When quoted prices in active markets are available, investments are classified within Level 1 of the fair value hierarchy. The County’s Level 1 investments primarily consist of investments in corporate debt securities, and mutual funds. When quoted prices in active markets are not available, fair values are based on evaluated prices received from the County’s custodian of investments. For the large portion of the County’s portfolio, the County’s custodians generally use a multi-dimensional relational model. Inputs to their pricing models are based on observable markets inputs in active markets. The inputs to the pricing models are typically benchmark yields, reported trades, broker-dealer quotes, issuer spreads, and benchmark securities, among others. The County owns no Level 3 investments


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Quoted Pricesin Active Signif icant

Markets for Other Signif icantIdentical Observable UnobservableAssets Inputs Inputs

June 30, 2019 (Level 1) (Level 2) (Level 3)Investments by Fair Value Level:

Debt Securities:FAMCA 14,995,975$ -$ 14,995,975$ -$ FFCB 39,947,221 - 39,947,221 - FHLB 40,348,511 - 40,348,511 - FHLMC 28,054,741 - 28,054,741 - FNMA 20,116,210 - 20,116,210 - Supranationals 73,323,477 - 73,323,477 - Municipal Bonds 46,158,213 - 46,158,213 - U.S. Treasury Notes 59,118,864 59,118,864 - - Negotiable CD 11,251,637 - 11,251,637 - Corporate Notes 41,694,696 - 41,694,696 - Business Checking 472,922 - 472,922 - Discovery Benefits 43,540 - 43,540 -

Total Investments by Fair Value Level 375,526,007$ 59,118,864$ 316,407,143$ -$

Investments Measured at Amortized Costs:

CAMP 55,978,516 LAIF 189,589,313

Total Investments Measured at Fair Value 621,093,836$

Fair Value Measurement Using


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Treasury Investment Pool Condensed Financial Information for the Treasurer’s Investment Pool In lieu of separately issued financial statements for the Treasurer’s investment pool, condensed financial information is presented below as of and for the fiscal year ended June 30, 2019: Statement of Net Position:

Net Position Held for Pool Participants 616,527,872$

Equity of Internal Pool Participants 163,429,766$ Equity of External Pool Participants (Voluntary and Involuntary) 453,098,106

Total Equity 616,527,872$

Statement of Changes in Net Position:Net Position Held for Pool Participants at July 1, 2018 525,666,127$ Net Change in Investments by Pool Participants 90,861,745

Net Position Held for Pool Participants at June 30, 2019 616,527,872$

NOTE 3 INTERFUND TRANSACTIONS

Interfund Receivables/Payables The interfund balances as of June 30, 2019 are as follows: Balances due to/from other funds:

Receivable Fund Payable Fund Amount

General Fund Agency Funds 82,942$ Agency Funds General Fund 21,040 Agency Funds Nonmajor Governmental Funds 83,385

Total 187,367$

These interfund balances resulted from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, 2) transactions are recorded in the accounting system, and (2) payments between funds are made.


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Transfers to/ from other funds: Transfers are indicative of funding for capital projects, lease payments or debt service, subsidies of various County operations, and re-allocations of special revenue. During the year, the County also funded a Section 115 trust for other postemployment benefits (OPEB). The following schedule briefly summarizes the County’s transfer activity: Transfers From Transfers To Amount

General Fund Behavioral Health Fund 859,677$ Social Services Fund 245,882 Road Fund 347,164 Nonmajor Governmental Funds 5,221,708

Subtotal 6,674,431

Behavioral Health Fund General Fund 136,431 Nonmajor Governmental Funds 311,368

Subtotal 447,799

Road Fund General Fund 33,636 Nonmajor Governmental Funds 166,052

Subtotal 199,688

Social Services Fund General Fund 220,716 Nonmajor Governmental Funds 1,856,417

Subtotal 2,077,133

Neal Road Landfill General Fund 6,431 Nonmajor Governmental Funds 11,627

Subtotal 18,058

Internal Service Funds General Fund 1,130,899 Behavioral Heath Fund 116,921 Road Fund 87,209 Neal Road Landfill 761,630 Nonmajor Governmental Funds 138,590

Subtotal 2,235,249

Nonmajor Governmental Funds General Fund 236,271 Road Fund 1,307,653 Nonmajor Governmental Funds 1,656,699

Subtotal 3,200,623

Total Transfers 14,852,981$


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NOTE 4 CAPITAL ASSETS

Capital asset activity for the year ended June 30, 2019 was as follows:

Beginning Transfers and EndingBalance Additions Retirements Adjustments Balance

Governmental ActivitiesCapital Assets, Not Being Depreciated:

Land 2,840,002$ -$ -$ -$ 2,840,002$ Construction in Progress 4,844,848 5,550,961 (75,217) (3,870,684) 6,449,908

Total Capital Assets, Not Being Depreciated 7,684,850 5,550,961 (75,217) (3,870,684) 9,289,910

Capital Assets, Being Depreciated:Infrastructure 592,823,826 1,153,062 - 2,600,793 596,577,681 Structures and Improvements 74,827,074 - - 1,266,933 76,094,007 Equipment 66,553,993 4,257,802 (1,668,185) - 69,143,610

Total Capital Assets, Being Depreciated 734,204,893 5,410,864 (1,668,185) 3,867,726 741,815,298

Accumulated Depreciation for:Infrastructure (532,390,798) (20,094,731) - - (552,485,529) Structures and Improvements (28,232,280) (1,749,917) - (8,444) (29,990,641) Equipment (51,839,403) (3,893,486) 1,561,504 - (54,171,385)

Total Accumulated Depreciation (612,462,481) (25,738,134) 1,561,504 (8,444) (636,647,555) Total Capital Assets, Being Depreciated, Net 121,742,412 (20,327,270) (106,681) 3,859,282 105,167,743

Governmental Activities Capital Assets, Net 129,427,262$ (14,776,309)$ (181,898)$ (11,402)$ 114,457,653$

Business-Type ActivitiesCapital Assets, Not Being Depreciated:

Land 420,932$ 1,000$ -$ -$ 421,932$ Construction in Progress 2,245,147 5,319,595 - (3,849,260) 3,715,482

Total Capital Assets, Not Being Depreciated 2,666,079 5,320,595 - (3,849,260) 4,137,414

Capital Assets, Being Depreciated:Infrastructure 26,964,074 - - 3,849,260 30,813,334 Structures and Improvements 100,690 - - - 100,690 Equipment 5,002,674 1,101,328 - - 6,104,002

Total Capital Assets, Being Depreciated 32,067,438 1,101,328 - 3,849,260 37,018,026

Accumulated Depreciation for:Infrastructure (3,688,870) (668,497) - - (4,357,367) Structures and Improvements (54,357) - - - (54,357) Equipment (3,417,845) (239,088) - - (3,656,933)

Total Accumulated Depreciation (7,161,072) (907,585) - - (8,068,657) Total Capital Assets, Being Depreciated, Net 24,906,366 193,743 - 3,849,260 28,949,369

Business-Type Activities Capital Assets, Net 27,572,445$ 5,514,338$ -$ -$ 33,086,783$


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Depreciation expense was allocated to functions as follows: Governmental Activities:

General Government 1,990,952$ Public Protection 3,090,602Public Ways 19,632,494Health and Sanitation 577,879Public Assistance 141,469Education 117,763Recreation and Cultural Services 190,768Capital Assets Held by the Government's Internal Service Funds are Charged to the Various Functions based on their Usage of Assets 4,651

Total Government Activities 25,746,578$

Business-Type Activities:Landfill 907,585$


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NOTE 5 LONG-TERM OBLIGATIONS

Annual Original OutstandingInterest Principal Issue at June 30,

Type of Indebtedness (Purpose) Maturity Rates Installments Amount 2019

Governmental Activities:

Pension Obligation Bonds:Series A 6/30/2034 5.896%-6.076% $370,000-$3,440,000 28,020,000$ 26,520,000$ Series B 6/30/2034 Variable $510,000-$2,105,000 21,875,000 19,300,000

Total Pension Obligation Bonds 49,895,000 45,820,000

Capital Lease Obligations:Chico Memorial Hall - 492 Rio Lindo 4/10/2020 7.40% $22,510-$61,156 583,400 56,943 Chico Memorial Hall - 554 Rio Lindo 4/10/2020 5.20% $30,626-$62,275 670,900 59,196 Government Campus Infrastructure 10/1/2032 2.99% $70,015-$213,217 2,658,000 2,443,021 Grader and Tractor Truck 4/13/2023 2.94% $93,782-$104,965 495,702 402,220 Motorola Solutions, Inc. -Equipment 12/15/2026 1.02% $684,356-$749,805 7,166,380 5,790,687

Total Capital Lease Obligations 11,574,382 8,752,067

Certificates of Participation:Hall of Records COP 7/1/2054 3.50% $100,000-$350,000 8,000,000 7,297,954 2010 Bangor Fire Station #55 COP 8/1/2050 4.00% $12,000-$50,000 1,100,000 936,333

Total Certif icates of Participation 9,100,000 8,234,287

Total Governmental Activities 70,569,382$ 62,806,354$

Business-Type Activities:

Capital Lease Obligations:JP Morgan Chase-Loader & Haul Truck 11/15/2021 1.568% $158,238-$168,398 816,393$ 497,437$ U.S. Bancorp-Waste Handler 3/18/2025 2.873% $155,806-$174,500 825,103 825,103

Total Capital Lease Obligations 1,641,496 1,322,540

Certificates of Participation:Refunded 2006 COP 9/1/2020 1.790% $1,025,000-$1,085,000 4,220,000 2,150,000

4,220,000 2,150,000

Total Business-Type Activities 5,861,496$ 3,472,540$ Long-term obligations of the County consist of capital lease obligations, bonds, certificates of participation, and other liabilities, which are payable from the General, Debt Service, Capital Projects, Enterprise, and Internal Service Funds.


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Summary of Changes in Long-Term Obligations

AmountsBeginning Ending Due WithinBalance Additions Retirements Balance One Year

Governmental Activities:Pension Obligation Bonds 46,865,000$ -$ 1,045,000$ 45,820,000$ 1,215,000$ Certif icates of Participation and Capital Leases

from Direct Borrow ings and Direct Placements 17,794,358 495,701 1,303,705 16,986,354 1,185,088 Claims and Judgments 8,745,000 4,696,938 4,107,937 9,334,001 2,600,000 Compensated Absences 16,899,395 23,580,643 22,431,145 18,048,893 18,048,893

Total Government Activities 90,303,753$ 28,773,282$ 28,887,787$ 90,189,248$ 23,048,981$

Business-Type Activities:Certif icates of Participation and Capital Leases

from Direct Borrow ings and Direct Placements 3,956,436$ 825,105$ 1,309,001$ 3,472,540$ 1,384,045$ Compensated Absences 135,388 208,767 142,826 201,329 201,329 Landfill Closure, Post-Closure Care Costs 7,625,600 777,637 - 8,403,237 -

Total Business-Type Activities 11,717,424$ 1,811,509$ 1,451,827$ 12,077,106$ 1,585,374$ Bonds Payable At June 30, 2019, bonds outstanding consist of the following:

Pension Obligation Bonds The pension obligation bonds were issued in three series (A, B, and C) in 2004. These bonds were issued to save future interest costs associated with the County’s pension obligations. Series A is comprised of serial and term bonds with fixed interest rates. The average coupon rate is 6.002% over the remaining life of the bonds. Series B has a variable rate derived from the one-month LIBOR index plus a margin of .30%. (The County elected to exercise its option to prepay Series C on September 1, 2007.) For fiscal year 2018/2019, the average rate paid for Series B was 2.41647%. The next payment of interest for Series A is due December 1, 2019. The interest payments for Series B are paid the first business day of each month. Principal payments for both Series A and B are due annually through maturity in fiscal year 2034. As of June 30, 2019, the estimated (Series B is a variable rate) annual debt service requirements to maturity for the Pension Obligation Bonds are as follows:

Year Ending June 30, Principal Interest Total2020 1,215,000 2,568,921 3,783,921 2021 1,405,000 2,503,019 3,908,019 2022 1,600,000 2,426,587 4,026,587 2023 1,815,000 2,339,284 4,154,284 2024 2,050,000 2,240,022 4,290,022

2025-2029 14,390,000 9,193,423 23,583,423 2030-2034 23,345,000 4,202,419 27,547,419

Total 45,820,000$ 25,473,675$ 71,293,675$

Direct Borrowings


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Capital Leases The following is a summary, by year, of future minimum lease payments, together with the present value of the minimum lease payments, as of June 30, 2019:

Governmental Business-TypeYear Ending June 30, Activities Activities

2020 1,210,203$ 350,553$ 2021 1,086,773 350,553 2022 1,086,773 350,552 2023 1,086,772 179,514 2024 978,723 179,514

2025-2029 3,378,707 - 2030-2034 774,443 -

Total Minimum Lease Payments 9,602,394 1,410,686 Less: Amount Representing Interest 850,327 88,146

Present Value of Minimum Lease Payments 8,752,067$ 1,322,540$

GASB 88 requires disclosure of collateral for debt. The County has pledged first position security interest in equipment for Motorola Solutions Inc. Equipment, Grader & Tractor Truck, JP Morgan Chase Loader & Haul Truck, and U.S. Bancorp Waster Handler as collateral. The following is a schedule of net remaining property leased under capital leases at June 30, 2019:

Acquisition Accumulated NetValue Depreciation Remaining

Governmental Activities:Structures and Improvements 859,971$ 221,546$ 638,425$ Infrastructure 2,533,322 - 2,533,322 Land 374,281 - 374,281 Equipment 7,696,160 1,915,121 5,781,039

Total 9,327,067$

Business-Type Activities:Equipment 2,401,305$ 491,242$ 1,910,063$

Total 1,910,063$


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Certificates of Participation

Governmental Activities 2010 Bangor Fire Station Certificates of Participation On August 11, 2010, the County issued $1,100,000 in Certificates of Participation. The proceeds, have funded the majority of the costs associated with the construction of improvements to Bangor Fire Station #55. Commencing with the interest only payment on February 1, 2011, a payment of interest only is due on February 1 of each year and a payment comprised of principal and interest is due on August 1 of each year. The interest rate is fixed at 4.0% per year. The final principal payment is due on August 1, 2050.

Year Ending June 30, Principal Interest Total2020 16,000 37,133 53,133 2021 17,000 36,473 53,473 2022 17,000 35,793 52,793 2023 18,000 35,093 53,093 2024 19,000 34,353 53,353

2025-2029 105,000 159,766 264,766 2030-2034 130,000 136,266 266,266 2035-2039 156,000 107,746 263,746 2040-2044 189,000 73,366 262,366 2045-2049 231,000 31,486 262,486 2050-2054 38,333 767 39,100

Total 936,333$ 688,242$ 1,624,575$


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Hall of Records Certificates of Participation On July 17, 2014, the County issued $8,000,000 in Certificates of Participation to the United States Department of Agriculture Rural Development to finance the construction of a Hall of Records. Commencing on July 1, 2015, a principal and interest payment is due on July 1 of each year and an interest only payment is due on January 1 of each year. The interest rate is fixed at 3.5% per annum. The final principal payment is due July 1, 2054.

Year Ending June 30, Principal Interest Total2020 109,000 257,266 366,266 2021 113,000 253,521 366,521 2022 117,000 249,636 366,636 2023 121,000 245,611 366,611 2024 125,000 241,446 366,446

2025-2029 692,000 1,139,679 1,831,679 2030-2034 822,000 1,012,017 1,834,017 2035-2039 977,000 860,292 1,837,292 2040-2044 1,160,000 680,059 1,840,059 2045-2049 1,378,000 465,999 1,843,999 2050-2054 1,636,000 211,759 1,847,759 2055-2059 47,954 839 48,793

Total 7,297,954$ 5,618,124$ 12,916,078$

Debt Refunding Business-Type Activities In July of 2016, the County entered into a lease financing with Capital One Public Founding for $4,220,000. The proceeds were used for a current refunding of the 2006 Certificates of Participation (COPs) for Neal Road Recycling and Waste Facility improvements. The refunding was undertaken to reduce total debt service payments by, approximately $345,000 over four (4) year term and resulted in an economic gain of $320,675.

Year Ending June 30, Principal Interest Total2020 1,065,000 28,953 1,093,953 2021 1,085,000 9,711 1,094,711 Total 2,150,000$ 38,664$ 2,188,664$


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Operating Leases The County is committed under various noncancellable operating leases for office buildings and equipment. The minimum future lease commitments on the real estate leases are as follows:

Year Ending June 30, Payments2020 4,732,252$ 2021 4,476,898 2022 3,923,092 2023 3,661,089 2024 3,393,354

2025-2029 16,226,754 2030-2034 14,591,080 2035-2039 12,736,318

Total Commitment 63,740,837$ Rental expense was $6,179,589 for all funds for the year ended June 30, 2019.


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Compensated Absences Vacation is accrued at varying rates depending on an employee's years of service. Upon termination, an employee is paid at 100% of the amount accrued. Compensated absences for vacation are paid out at the employee's current rate of pay. Administrative leave is accrued by employees exempt from paid overtime and may be accrued up to a maximum of 352 hours. Administrative leave is paid out at the current hourly rate. Options for sick leave include the following. Upon termination an employee may be compensated for sick leave amounts accrued over 240 hours at half the normal pay rate not to exceed $3,000. Employees other than Department Heads, Elected Department Heads, Board of Supervisors, Non-Represented, and Board Executive Assistants hired after June 30, 2010 will not be eligible for sick-leave buy out nor will they receive one year of County-paid health benefits after retirement. Retiree benefits are determined by bargaining unit and date of hire. Please see the Retiree sick leave conversion by unit for updated changes. In general Appointed Department Heads, Elected Department Heads, Non-Represented, Confidential, BCMEA, and Boards Executive Assistants, are limited to a plan up to the price of the Blue Shield HMO. PPOA, PPOA management, Professional Unit, District Attorney, Skilled Trades, BCCOA, and BCCOA Supervisory are all at the lowest cost plan offered by CalPERS. DSA, and DSA Management, may have the PORAC plan as long as it is one of the two least expensive plans. The General unit and the Social Workers unit, receive the Select Plus Rate for health insurance into retirement. The County does not accrue for compensated absences in its governmental fund statements and recognizes liabilities for compensated absences only if they are due and payable in an event such as termination. However, in the statement of activities the expense is allocated to each function based on usage. The compensated absences liability attributable to the governmental activities will be liquidated as follows: General Fund 54%, Social Services Fund 17%, Public Health Fund 6%, Behavioral Health Fund 15%, Road Fund 5%, and Nonmajor Funds 3%.

Landfill Closure and Post-Closure Costs State and federal laws and regulations require the County operator to place a final cover on its Neal Road Landfill site when it stops accepting waste, and to perform certain maintenance and monitoring functions at the site for thirty years after closure. Although closure and post-closure care costs will be paid only near to or after the date the landfill stops accepting waste, the County reports a portion of these closure and post-closure care costs as an operating expense in each period based on landfill capacity used as of each balance sheet date. The County Neal Road Landfill Joint Technical Document (JTD) was revised in May 2016, resulting in change of available landfill capacity from the original design in 2002. The new calculated capacity for the Landfill is smaller compared with the original design, which resulted in a greater percent of capacity filled. According to the revised JTD document, as of August 31, 2016, with the annual inflation factor, the estimated highest closure costs, highest correction costs and highest post-closure costs are $12,666,993, $1,916,527, and $10,686,050, respectively.


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Annually, the Landfill adjusts estimated closure and correction costs due to changes in inflation and capacity. Such changes resulted in an increase to the Landfill closure, correction care and post-closure liability and caused an increase in expense. Based upon new estimated capacity, 33.254% capacity is reported to date as the cumulative usage as of June 30, 2019. The $8,403,238, reported as landfill closure and corrective action and post-closure liability at June 30, 2019, represents the 33.254% of the estimated closure and corrective action and post-closure costs. The County will recognize the remaining estimated closure costs of $16,866,332 as the remaining estimated capacity is filled. These amounts are based on what it would cost to perform all closure, corrective actions and post-closure maintenance in 2019. The County expects to close the landfill in the fiscal year 2031. Actual costs may be higher due to changes resulting from inflation, deflation, technology, or changes in applicable laws or regulations. In addition, the County Board established a Pledge of Revenue in 2005 to demonstrate financial responsibility for post-closure maintenance of the Neal Road Landfill. The amount of $356,202 Pledge Revenue per year in 2019 dollars for the thirty years period of post-closure maintenance, representing the most recent post-closure maintenance cost estimate of $10,686,050. Rebatable Arbitrage Earnings The Tax Reform Act of 1986 instituted certain arbitrage restrictions with respect to the issuance of tax-exempt bonds after August 31, 1986. Arbitrage regulations deal with the investment of all tax-exempt bond proceeds at an interest yield greater than the interest yield paid to bondholders. Generally, all interest paid to bondholders can be retroactively rendered taxable if applicable rebates are not reported and paid to the Internal Revenue Service at least every five years. During the current year, the County performed calculations of excess investment earnings on various bonds and financings and at June 30, 2019 does not expect to incur a liability.


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NOTE 6 RESTRICTED NET POSITION/FUND BALANCES

Fund Balances Fund balances are presented in the following categories: nonspendable, restricted, committed, assigned, and unassigned. A detailed schedule of fund balances at June 30, 2019 is as follows:

Behavioral Other TotalSocial Health Road Governmental Governmental

General Services Fund Fund Funds FundsNonspendable:

Prepaid Items 574,056$ -$ 41,343$ -$ 1,194$ 616,593$ Revolving loan 82,942 - - - - 82,942 Imprest Cash Reserve 18,071 28,028 818 50 9,758 56,725 Inventory - - - 273,137 - 273,137

Total Nonspendable 675,069 28,028 42,161 273,187 10,952 1,029,397

Restricted:Purpose of Fund - 6,260,022 11,713,652 4,471,623 62,217,112 84,662,409 Clerk Recorder 2,183,509 - - - - 2,183,509 Public Works 359,124 - - - - 359,124 District Attorney 1,288,129 - - - - 1,288,129 Administration 2,573,961 - - - - 2,573,961 Probation 1,580,644 - - - - 1,580,644 Sheriff 1,659,501 - - - - 1,659,501 Fire 4,066,771 - - - - 4,066,771 Library 205,691 - - - - 205,691 2011 Realignment 15,620,174 1,360,248 - - - 16,980,422

Total Restricted 29,537,504 7,620,270 11,713,652 4,471,623 62,217,112 115,560,161

Committed:General Reserve 8,000,000 - - - - 8,000,000

Assigned:OPEB 115 Trust 2,161,169 - - - - 2,161,169 Various Programs 511,234 - - 126,744 - 637,978

Total Assigned 2,672,403 - - 126,744 - 2,799,147

Unassigned Fund Balance 14,012,088 - - - - 14,012,088

Total Fund Balances 54,897,064$ 7,648,298$ 11,755,813$ 4,871,554$ 62,228,064$ 141,400,793$

The restricted component of net position are assets that are subject to constraints either externally imposed by creditors, grantors, contributors, or laws or regulations of other governments, or imposed by law through constitutional provisions or enabling legislation. The Board of Supervisors revised the General Fund Reserve Policy originally adopted in 2010 on May 9, 2017. The policy was created to allow the County to respond strategically and responsibly to legally declared emergencies as defined in Government Code § 29086. This policy sets forth the parameters and funding methods the County may utilize to establish and maintain an adequate General Fund reserve.


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General Reserve requirements are classified as follows:

• Appropriation for Contingencies – During the public hearing on the Proposed Budget, the Board of Supervisors will consider establishing an Appropriation for Contingencies in the General Fund equal to or greater than five percent (5%) of the Proposed Budget for the General Fund.

• General Fund Reserve – It is the goal of the Board of Supervisors to build a General Fund Reserve to an amount equivalent to two months of operating expenses for all County governmental funds.

o During the public hearing on the Proposed Budget the Board of Supervisors will consider directing contributions to the General Fund Reserve in the following circumstances: When projected General Fund tax revenue receipts for the upcoming

fiscal year are expected to increase by more than four percent (4%) over the current (closing) fiscal year, the Board of Supervisors will consider contributing to the General Fund Reserve at least half (50%) of the growth over and above the four percent (4%) baseline anticipated tax revenue growth.

When one-time, unanticipated, discretionary revenues exceeding $500,000 with no offsetting expenditures were received over the current (closing) fiscal year, the Board of Supervisors will consider contributing all or a portion of those funds to the General Fund Reserve.

When the County Auditor-Controller and the Chief Financial Officer determine additional working capital is needed in the General Fund Reserve for cash flow of the County, the Board of Supervisors will consider contributing the calculated amount needed to cover cash flow demands.

o During the public hearing on the Proposed Budget, in response to fiscal emergency or as part of a multiyear plan to adjust to revenue losses, the Board of Supervisors may consider reducing the amount set aside in the General Fund Reserve.

• Excess Fund Balance Available – When adopting the annual budget for the General Fund, the Board of Supervisors will provide direction to the County Auditor-Controller to reconcile the difference between the General Fund’s estimated and actual Fund Balance Available at the beginning of the budget period. In those instances when the actual Fund Balance Available is less than estimated, the County Auditor-Controller will be directed to reduce the General Fund Appropriation for Contingencies. In those instances when the actual Fund Balance Available is greater than estimated, the County Auditor-Controller will be given specific direction, generally within the following parameters:

o The first priority for Excess General Fund Balance Available at the beginning of each fiscal year, if any, is to increase the Appropriation for Contingencies to ensure it is maintained, at a minimum, at the five percent (5%) level.


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o The second priority for Excess General Fund Balance Available at the

beginning of each fiscal year, if any, is to increase the General Fund Reserve to help achieve the goal of setting aside two months of operating expenses.

o The third priority for Excess General Fund Balance Available at the beginning of each fiscal year, if any, is to designate fund balance for known and quantified unfunded liabilities, including but not limited to the following: Employee pension plan Other post employment benefits Accrued employee leave

• Unreserved Fund Balance – The County will maintain sufficient fund balances in the

General Fund to provide adequate working capital and to accommodate required adjustments to other reserve accounts, including advances to other funds. Appropriations or use of funds from Unreserved Fund Balances will require approval by the Board of Supervisors.

• Other Assignments or Commitments of the General Fund – establishment of these policies do not preclude the Board of Supervisors from setting aside additional funds for a specific project, program or capital item.

Net Position The government-wide statement of net position reports $117 million of restricted net position. Net investment in capital assets, was comprised of the following:

Governmental Business-TypeActivities Activities

Capital Assets, Net of Accumulated Depreciation 114,457,653$ 33,086,783$ Outstanding Principal of Capital-Related Debt (16,986,354) (3,472,539) Net Investment in Capital Assets 97,471,299$ 29,614,244$

NOTE 7 COUNTY EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN)

A. General Information about the Pension Plan Plan Description All qualified permanent and probationary employees are eligible to participate in the Butte County’s separate Safety and Miscellaneous Plans, agent multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plan are established by state statute and Butte County Resolution. CalPERS issues publicly available reports that include a full description of the pension plans including benefit provisions, actuarial assumptions and membership information that may be viewed on their website: http://www.calpers.ca.gov

http://www.calpers.ca.gov/


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Benefits Provided CalPERS provide service retirement disability and death benefits, annual cost of living adjustments to plan members, who must be public employees and/or beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for nonduty disability benefits after 20 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. The contribution requirements of plan members and the County are established and may be amended by the Board of Supervisors in accordance with union contracts and plan provisions. Benefits Provided (Continued) The Plan’s provisions and benefits in effect at June 30, 2019 are summarized as follows:

Prior to On or AfterHire Date January 1, 2013 January 1, 2013Benefit Formula 2% @ 55 2% @ 62Benefit Vesting Schedule 5 Years of Service 5 Years of ServiceBenefit Payment Monthly for Life Monthly for LifeRetirement Age 50 - 55 52 - 67Monthly Benefits, as a % of Eligible Compensation 2.00% 2.00%Required Employee Contribution Rates 7.00% 7.00%Required Employer Contribution Rates 19.663% 19.663%

Prior to On or AfterHire Date January 1, 2013 January 1, 2013Benefit Formula 2%-3% @ 50 2.7% @ 57Benefit Vesting Schedule 5 Years of Service 5 Years of ServiceBenefit Payment Monthly for Life Monthly for LifeRetirement Age 50 52 - 67Monthly Benefits, as a % of Eligible Compensation 2.00% 2.00%Required Employee Contribution Rates 9.00% 12.30%Required Employer Contribution Rates 34.774% 34.774%

Miscellaneous

Safety

Employees Covered

Miscellaneous SafetyInactive Employees or Beneficiaries Receiving Benefits 1,941 292 Inactive Employees Entitled to but Not Yet Receiving Benefits 1,520 195 Active Employees 1,842 306

Total 5,303 793


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Contributions Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on July 1 following notice of a change in rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of the employees. For the measurement period ended June 30, 2018 (the measurement date), the average active employee contribution rate is 6.879 percent of the annual pay for the Miscellaneous Plan, and 9.647 percent of annual pay for the Safety Plan. The employer’s contribution rate is 8.315 percent of the annual payroll for the Miscellaneous Plan, and 16.823 percent for the Safety Plan. Employer contribution rates may change if plan contracts are amended. It is the responsibility of the employer to make necessary accounting adjustments to reflect the impact due to any Employer Paid Member Contributions or situations where members are paying a portion of the employer contribution.

B. Net Pension Liability

Butte County’s net pension liability for each Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2018 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below

Miscellaneous SafetyValuation Date June 30, 2017 June 30, 2017Measurement Date June 30, 2018 June 30, 2018Actuarial Cost MethodActuarial Assumptions:

Discount Rate 7.15% 7.15%Inflation 2.63% 2.63%Payroll Growth 2.75% 2.75%Investment Rate of Return1 7.25% 7.25%Mortality Rate Table2

Postretirement Benefit Increase

2.75% Thereafter

Entry-Age Normal Cost Method

Derived using CalPERS' Membership DataContract COLA up to 2.75% until

Purchasing Power Applies,


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1 Net of pension plan investment and administrative expenses, includes inflation 2 The mortality table used was based on CalPERS’ specific data. The table includes

20 years of mortality improvement using the Society of Actuaries Scale BB. Discount Rate The discount rate used to measure the total pension liability was 7.15%. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long-term expected discount rate of 7.65% is applied to all plans in the Public Employees Retirement Fund. The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS’ website under the GASB 68 section. According to Paragraph 30 of Statement 68, the long-term discount rate should be determined without reduction for pension plan administrative expense. The 7.50% investment return assumption used in this accounting valuation is net of administrative expenses. Administrative expenses are assumed to be 15 basis points. An investment return excluding administrative expenses would have been 7.15%. Using this lower discount rate has resulted in a slightly higher total pension liability and net pension liability. This difference was deemed immaterial to the agent multiple-employer plan. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the fund asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11 – 60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumption applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses.


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New Strategic Real Return Real ReturnPension Allocation Years 1-101 Years 11+2

Global Equity 50.00 % 4.80 % 5.98 %Global Fixed Income 28.00 1.00 2.62Inflation Sensitive - 0.77 1.81Private Equity 8.00 6.30 7.23Real Assets 13.00 3.75 4.93Liquidity 1.00 - (0.92) 1 An expected inflation of 2.5% used for the period 2 An expected inflation of 3.0% used for this period

C. Changes in Net Pension Liability

The changes in the net pension liability for each Plan follow:

Total Pension Plan Fiduciary Net PensionLiability Net Position Liability/(Asset)

Miscellaneous Plan (a) (b) (c)=(a)-(b)

Balance at June 30, 2017 (Valuation Date)1 661,643,024$ 487,110,877$ 174,532,147$

Changes Recognized for the Measurement Period:

Service Cost 15,742,530 - 15,742,530 Interest on Total Pension Liability 46,796,267 - 46,796,267 Change of Assumptions (4,093,183) - (4,093,183) Differences between Expected and Actual Experience 6,859,709 - 6,859,709 Plan to Plan Resource Movement - (1,193) 1,193 Contributions from the Employer - 15,096,714 (15,096,714) Contributions from the Employees - 6,924,162 (6,924,162) Net Investment Income2 - 40,852,457 (40,852,457) Benefit Payments, including Refunds of Employee Contribution (33,042,809) (33,042,809) - Administrative Expenses - (757,600) 757,600 Other Charges - (1,438,696) 1,438,696 Change of Allocation (1,266,169) (932,171) (333,998)

Net Change 30,996,345 26,700,864 4,295,481

Balance at June 30, 2018 (Measurement Date) 692,639,369$ 513,811,741$ 178,827,628$

Increase (Decrease)


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Total Pension Plan Fiduciary Net PensionLiability Net Position Liability/(Asset)

Safety Plan (a) (b) (c)=(a)-(b)

Balance at June 30, 2017 (Valuation Date)1 198,229,239$ 140,354,673$ 57,874,566$


Service Cost 5,814,366 - 5,814,366 Interest on Total Pension Liability 14,133,635 - 14,133,635 Change of Assumptions (1,071,908) - (1,071,908) Differences between Expected and Actual Experience 1,515,266 - 1,515,266 Changes in Assumptions - (352) 352 Contributions from the Employer - 5,854,476 (5,854,476) Contributions from the Employees - 2,316,633 (2,316,633) Net Investment Income2 - 11,853,239 (11,853,239) Benefit Payments, including Refunds of Employee Contribution (7,813,178) (7,813,178) - Administrative Expenses - (218,711) 218,711 Other Charges - (415,336) 415,336

Net Change 12,578,181 11,576,771 1,001,410

Balance at June 30, 2018 (Measurement Date) 210,807,420$ 151,931,444$ 58,875,976$

Increase (Decrease)


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Sensitivity of Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 7.15%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (6.15%) or 1 percentage point higher (8.15%) than the current rate.

Miscellaneous Safety

1% Decrease 6.15% 6.15%Net Pension Liability 269,289,143$ 89,717,931$

Current Discount Rate 7.15% 7.15%Net Pension Liability 178,827,628$ 58,875,976$

1% Increase 8.15% 8.15%Net Pension Liability 103,716,043$ 33,637,624$ Subsequent Events The CalPERS Board of Administration has adopted a new amortization policy effective with the June 30, 2019 actuarial valuation. The new policy shortens the period over which actuarial gains and losses are amortized from 30 years to 20 years with the payments computed using a level dollar amount. In addition, the new policy removes the 5-year ramp-up and ramp-down on UAL bases attributable to assumption changes and non-investment gains/losses. The new policy removes the 5-year ramp-down on investment gains/losses. These changes will apply only to new UAL bases established on or after June 30, 2019. For inactive employers the new amortization policy imposes a maximum amortization period of 15 years for all unfunded accrued liabilities effective June 30, 2017. Furthermore, the plan actuary has the ability to shorten the amortization period on any valuation date based on the life expectancy of plan members and projected cash flow needs to the plan. The impact of this has been reflected in the correct valuation results. The contribution requirements determined in this actuarial valuation report are based on demographic and financial information as of June 30, 2018. Changes in the value of assets subsequent to that date are not reflected. Investment returns below the assumed rate of return will increase the required contribution, while investment returns above the assumed rate of return will decrease the required contribution. This actuarial valuation report reflects statutory changes, regulatory changes and Cal-PERS Board actions through January 2019. Any subsequent changes or actions are not reflected.


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D. Pension Expense and Deferred Outflows/Inflows of Resources Related to

Pensions For the year ended June 30, 2019, Butte County recognized pension expense of $37,977,656. At June 30, 2019, Butte County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows Deferred Inflows Deferred Outflows Deferred InflowsOf Resources Of Resources Of Resources Of Resources

Pension Contributions Subsequent to Measurement Date 18,137,873$ -$ 7,132,089$ -$ Differences Between Actual and Expected Experience 4,954,234 2,340,289 1,421,789 211,794 Changes in Assumptions on Plan Investments 16,110,316 2,956,187 6,818,035 1,401,656 Net Difference Between Projected and Actual Earnings 1,494,369 - 470,751 -

Total 40,696,792$ 5,296,476$ 15,842,664$ 1,613,450$

Safety PlanMiscellaneous Plan

Deferred outflows of resources of $18,137,873 and $7,132,089 to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability for the miscellaneous and safety plans, respectively, in the year ended June 30, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ending June 30, Miscellaneous Safety2020 15,590,966$ 3,738,342$ 2021 7,457,717 3,147,573 2022 (4,460,708) 520,494 2023 (1,325,532) (309,283) Total 17,262,443$ 7,097,126$

NOTE 8 OTHER POSTEMPLOYMENT BENEFITS (OPEB)

Plan Description The County provides health care benefits for retired employees and their beneficiaries through a single employer plan. The County sponsors healthcare coverage under the California Public Employees Medical and Hospital Care Act (PEMHCA), commonly referred to as PERS Health. PEMHCA provides halth insurance through a variety of Health Maintenance Organization (HMO) and Preferred Provider Organization (PPO) options. Participation in PEMHCA is financed in part by the County through a contribution to PEMHCA of $128.00, $133.00 and $136.00 for 2017, 2018, and 2019 respectively. Delta Dental, vision and life insurance are also available. For employees represented by Teamsters Local 137, coverage is funded through County and employee contributions.


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Postretirement Coverage The County also offers medical, dental and vision coverage (but not life insurance) to its retirees who meet certain requirements per the County’s agreement with the employee. The County makes the required statutory PEMHCA contribution as described above. Furthermore, the County will make additional contributions towards certain eligible retirees' premiums until age 65 according to the County’s agreements with its various employee groups, as describe below. Retirees who have completed at least 10 cumulative years of service with the County, have accrued sick leave in excess of certain hours, and elect retiree health insurance rather than the sick leave payout option, are eligible to receive reimbursements from the County for the cost of medical, dental and vision insurance (offset by the County’s statutory contribution to PEMHCA.) Employees other than nonrepresented groups hired after June 30, 2010 will not be eligible for sick-leave buyout nor will they receive one year of County-paid health benefits after retirement. Retirees other than nonrepresented groups who retired on or after January 1, 2010 will be subject to a limit on County reimbursements equal to the sum of the Blue Shield HMO premium, Delta DPO and vision premiums. For Teamsters-General, Teamsters-SSW, BCMEA, BCCOA-General, BCCOA-Supervisory, PPOA, PPOA-Mgmt, Supervisor’s Administrative Services Assistants, and Miscellaneous and Assistant Probation Officer positions within the "Assistant Department Heads and Nonrepresented" group, the retiree may make an irrevocable election at the time of retirement to receive one of the following benefit options in addition to 12 months of County-paid health insurance:

1) One month of retiree-only premiums for each day of accrued sick leave at retirement; 2) One month of 2-party premiums (employee and spouse) for each 2-1/2 days in

excess of 30 days accrued sick leave to cover both employee and spouse until age 65; or

3) One month of retiree-only premiums for each day of accrued sick leave until the sick leave credit is exhausted or the retiree reaches age 65, and one month of premiums for spousal coverage for each day of accrued sick leave in excess of thirty days until the sick leave credit is exhausted or the spouse reaches age 65.

For DSA General, DSA Management, Under Sheriffs, and BCPEA, the retiree will receive 12 months of County-paid retiree-only health coverage. In addition, each one day of accrued sick leave is converted to one month of retiree-only health insurance premiums and credited to an account for the retiree. Premiums of the retiree and dependents, if applicable, are deducted from the account until it is depleted, or until the retiree reaches age 65, if earlier. Elected and appointed department heads or officials retiring in good standing before age 65 under the provisions of the County’s contract with PERS may continue to cover themselves and eligible dependents under the health plans. The County pays the full premium until age 65.


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In all cases, once the additional County contributions (as described above) end, the County pays the applicable PEMHCA statutory contribution for the remainder of the retiree’s lifetime. Changes in Eligibility for Sick-Leave Buy-out Employees other than nonrepresented groups hired after June 30, 2010 will not be eligible for sick-leave buyout nor will they receive one year of County-paid health benefits after retirement. Retirees other than nonrepresented groups who retired on or after January 1, 2010 will be subject to a limit on County reimbursements equal to the sum of the Blue Shield HMO premium, Delta DPO and vision premiums. Healthcare Premiums The following table shows January 1, 2018 monthly PERS Health (PEMHCA) premiums for retirees within the Other Northern California region (Bay Area/Sacramento for Kaiser). Dental and vision rates in effect for January 1, 2018 are also included.

Blue PERS PERS PERS Delta DeltaShield Kaiser Choice Care Select Premier DentalHMO HMO PPO PPO PPO Dental PPO Vision

Basic PlanRetiree 894.43$ 795.43$ 813.96$ 866.93$ 691.78$ 37.90$ 34.86$ 13.90$ Retiree + 1 1,788.86 1,590.86 1,627.92 1,733.86 1,383.56 81.84 75.90 13.90 Family 2,325.52 2,068.12 2,116.30 2,254.02 1,798.63 121.50 119.28 13.90

Medicare SupplementalRetiree N/A 316.34$ 345.97$ 383.30$ 345.97$ N/A N/A N/ARetiree + 1 N/A 632.68 691.94 764.60 691.94 N/A N/A N/AFamily N/A 949.02 1,037.91 1,146.90 1,037.91 N/A N/A N/A

Actuarial Assumptions The Net OPEB Liability was measured as of June 30, 2019 and was determined using an actuarial valuation as of June 30, 2017, using the following actuarial assumptions: Salary increases 3.00%Investment rate of return 4.50%, net of OPEB plan investment expenseHealthcare Trend Rate 6.00% for 2017, 5.00% thereafter

Employees Covered by Benefit Terms At June 30, 2019, the following employees were covered by the benefit terms:

Active employees 2,155 Inactive employees or beneficiaties

currently receiving benefits 545 Inactive employees entitled to but not yet

receiving benefits - Total 2,700


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Changes in the Net OPEB Liability The table below shows the changes in the total OPEB liability, the Plan Fiduciary Net Position, and the net OPEB liability as of June 30, 2019.

Total OPEB Plan Fiduciary Net OPEBLiability Net Position Liability/(Asset)

Balance at June 30, 2018(Valuation Date June 30, 2017) 69,767,772$ 4,447,401$ 65,320,371$


Service cost 2,972,759 - 3,705,783 Interest 3,060,226 - 2,658,706 Changes of assumptions (8,111,890) - (5,503,188) Difference between expected and actual experience - - - Contributions - employer - 4,608,778 (5,536,614) Contributions - employee - - - Net investment income - 415,062 (103,079) Benefit payments (3,564,731) (3,564,731) - Administrative expenses - (4,370) 2,693

Net Changes (5,643,636) 1,454,739 (7,098,375)

Balance at June 30, 2019(Measurement Date June 30, 2019) 64,124,136$ 5,902,140$ 58,221,996$

Increase (Decrease)

Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the County, as well as what the County net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current discount rate.

1% Decrease Current Rate 1% Increase4.74% 5.74% 6.74%

Net OPEB Liability 64,645,256$ 58,221,996$ 52,660,483$


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The following presents the net OPEB liability of the County, as well as what the County net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates.

1% Decrease Current Rate 1% Increase4.00% 5.00% 6.00%

Net OPEB Liability 50,740,948$ 58,221,996$ 67,110,356$

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended June 30, 2019, the County recognized OPEB expense of $3,938,995. OPEB expense represents the change in the net OPEB liability during the measurement period, adjusted for actual contributions and the deferred recognition of changes in investment gain/loss, and actuarial assumptions or method. At June 30, 2019, the County reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred DeferredOutflows of Inflows ofResources Resources

Changes of assumptions -$ 11,055,653$ Net difference between projected and actual earnings on OPEB plan investments 17,672 146,133

Total 17,672$ 11,201,786$


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Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

DeferredOutflows (Infows)

Year Ending June 30, of Resources2020 (1,865,965)$ 2021 (1,865,965) 2022 (1,865,963) 2023 (1,871,855) 2024 (1,835,323)

Thereafter (1,879,043)

NOTE 9 RISK MANAGEMENT

The County is exposed to various risk of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The County has three risk management funds (Internal Service Funds) to consolidate the County’s insurance programs that are partially self-insured. Fund revenues are primarily premium charges to other funds and are planned to equal estimated expenses resulting from self-insurance programs, liability insurance coverage in excess of the self-insured amount, and operating expenses. The primary activities of the funds consist of risk management programs related to the following:

General Liability Insurance Unemployment Insurance Workers’ Compensation Insurance

For general liability and workers’ compensation claims, the County is a participant in the California State Association of Counties (CSAC) – Excess Insurance Authority excess liability insurance program. The County maintains a self-insured retention (SIR) of $100,000 per occurrence for its general liability program and $125,000 for its workers’ compensation program. The purpose of the pool is to spread the adverse effects of losses among the member agencies. The County pays an annual basic premium for excess coverage and is assessed an annual risk premium based on an actuarial review that estimates each of the program’s participant’s ultimate liabilities. Should the actual losses among participants be greater than anticipated, the County will be assessed its pro rata share of that deficiency. Conversely, if the actual losses are less than anticipated, the County will be refunded its pro rata share of the excess. Commercial insurance covers claims between $100,000 and $20,000,000 for general liability. Settled claims have not exceeded this commercial coverage in any of the past three fiscal years. The County is fully self-insured for its unemployment insurance program. Quarterly billings from the State Employment Development Department are sent to the County’s claims


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reviewers, R.E. Harrington, Inc. After the claims are reviewed by R.E. Harrington, Inc., they are turned over to the County for payment. It is the County’s policy to accrue to the Internal Service Fund the estimated liability, as determined with the assistance of independent actuaries, for claims in cases where such amounts are reasonably determinable and where the likelihood of liability exists. All operating funds participate in the program and make payments to the insurance funds based on actuarial estimates of the amounts needed to pay prior and current year claims, and to allow accrual of estimated incurred but not reported claims. These claims liability estimates are based on the requirements of GASB Statements Nos. 10 and 30 and include estimate claims incurred but not yet reported as of June 30, 2019. The claims liability includes all allocated loss adjustment expenses as well as nonincremental claims adjustment expenses. Changes in the insurance funds’ claims liability amount during the fiscal years ended June 30, 2018 and 2019 were as follows:

ClaimsClaims Incurred ClaimsLiability and Changes Claim Liability

Fiscal Year July 1 in Estimates Payments June 30

2017-2018 8,796,000$ 4,108,181$ (4,159,181)$ 8,745,000$

2018-2019 8,745,000$ 4,696,938$ (4,107,938)$ 9,334,000$

NOTE 10 CONTINGENCIES

Grants The County participates in a number of grant programs funded, in whole or part, by federal, state and other sources. These programs are subject to program compliance audits by the grantors or their representatives. The audits of these programs for or including the fiscal year ended June 30, 2019, have not yet been conducted. Additionally, certain audits related to prior fiscal years have not been finalized. Accordingly, the County’s compliance with applicable grant requirements will be established at some future date. The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time, although, the County expects such amounts, if any, to be immaterial. Litigation The County is a defendant in various matters of litigation. Of these matters, management and County’s legal counsel do not anticipate any material effect on the June 30, 2019 financial statements.


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NOTE 11 SUBSEQUENT EVENTS

California State Budget The State is the source for a significant amount of Butte County’s revenues. The State has adopted a balanced budget for the 2019-2020 fiscal year and the County doesn’t anticipate additional state cuts. However, as in the past, if State revenue is cut midyear the County will make the necessary adjustments to address the reductions.

Camp Fire Settlement On November 8, 2018, the Camp Fire erupted and became the most destructive wildfire in California’s history. The fire burned 153,336 acres and damaged or destroyed more than 19,000 structures. 85 of our community members perished and more than 14,000 families were displaced. PG&E has accepted a Mediator’s proposal of $252 million to resolve the County’s Camp Fire claims. The Mediator’s proposal is exclusive of and does not affect the claims of any residents, individuals, or businesses. The payment is to be incorporated in, and subject to confirmation by the Bankruptcy Court, a plan of reorganization to be filed by PG&E in its pending Chapter 11 case. The settlement is part of a total settlement of $1 billion to be paid to local government entities pursuant to the confirmed plan of reorganization.

Department of Water Resources Settlement (DWR) Butte County and DWR reached an agreement on the lawsuit filed by Butte County for roadway damages and unreimbursed costs resulting from the Oroville Dam Spillway Incident in February 2017. The County has received $12 million from DWR in this settlement. During the Spillway Incident and the reconstruction work that followed, county roads were significantly damaged and the estimated repairs exceed $14 million. Additionally, during the event the County incurred $963,943 in unreimbursed costs related to emergency management and staffing costs during the evacuation when County offices were closed and/or evacuated employees were unable to work. Staff recommends that the Board of Supervisors direct staff to utilize $963,943 to reimburse various County funds with the remaining balance of $11,036,057 transferred to the Road Fund to support the County's Road infrastructure. Specifically the $963,943 would be allocated as follows: $364,857 to the General Fund; $202,376 to the Social Services Fund; $37,091 to the Public Health Fund; $41,523 to the Behavioral Health Fund; $50,835 to the Child Support Fund; $266,559 to the Road Fund; and $702 to the IHSS Public Authority Fund. As these are funds reimbursing the County for costs already incurred, staff does not recommend appropriating the funds for other uses. The $11 million for county roads will be appropriated as projects move forward.

REQUIRED SUPPLEMENTARY INFORMATION

COUNTY OF BUTTE, CALIFORNIA COUNTY EMPLOYEES’ RETIREMENT PLAN

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Last 10 Fiscal Years* MISCELLANEOUS PLAN

2018 2017 2016 2015 2014TOTAL PLAN LIABILITY

Service Cost 15,742,530$ 15,090,763$ 13,394,007$ 13,400,002$ 13,859,395$ Interest on Total Pension Liability 46,796,267 44,666,846 43,273,635 41,926,195 40,193,350 Difference Between Expected and Actual Experience 6,859,709 (4,896,622) (890,486) (4,927,030) - Changes in Assumptions (4,093,183) 36,317,713 - (10,024,368) - Benefit Payments Including Refunds

of Employee Contributions (33,042,809) (30,560,691) (29,432,567) (28,002,841) (25,453,443) Change in Allocation (1,266,169) 102,238 (8,101,428) - -

Net Change in Total Pension Liability 30,996,345 60,720,247 18,243,161 12,371,958 28,599,302 Total Pension Liability - Beginning 661,643,025 600,922,778 582,679,617 570,307,659 541,708,357 Total Pension Liability - Ending (A) 692,639,370$ 661,643,025$ 600,922,778$ 582,679,617$ 570,307,659$

PLAN FIDUCIARY NET POSITIONPlan to Plan Resource Movement (1,193)$ 11,367$ (640,888)$ -$ -$ Contributions - Employer 15,096,714 14,523,234 12,439,191 11,234,311 10,606,484 Contributions - Employee 6,924,162 6,892,067 6,329,016 6,686,660 6,497,335 Net Investment Income 40,852,457 49,577,107 2,408,140 10,452,870 69,463,572 Benefit Payments Including Refunds of Employee Contributions (33,042,809) (30,560,691) (29,432,567) (28,002,841) (25,106,484) Administrative Expense (757,600) (660,450) (278,169) - - Other Miscellaneous Income/(Expense) (1,438,696) - - - - Change of Allocation (932,171) 76,093 (6,596,372) (520,140) (346,959)

Net Change in Fiduciary Net Position 26,700,864 39,858,727 (15,771,649) (149,140) 61,113,948 Plan Fiduciary Net Position - Beginning 487,110,878 447,252,151 463,023,800 463,172,940 402,058,992 Plan Fiduciary Net Position - Ending (B) 513,811,742$ 487,110,878$ 447,252,151$ 463,023,800$ 463,172,940$

Plan Net Pension Liability/(Asset) - Ending (A-B) 178,827,628$ 174,532,147$ 153,670,627$ 119,655,817$ 107,134,719$

Plan Fiduciary Net Position as a Percentage of the 74.18% 73.62% 74.43% 79.46% 81.21% Total Pension Liability

Covered Payroll 106,855,155$ 101,936,350$ 99,700,929$ 96,860,213$ 95,493,743$

Plan Net Pension Liability/(Asset) as a Percentage of Covered Payroll 167.36% 171.22% 154.13% 129.72% 112.19%

*Amounts presented above were determined as of 6/30. Additional years will be presented as they become available.


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Last 10 Fiscal Years* SAFETY PLAN

2018 2017 2016 2015 2014TOTAL PLAN LIABILITY

Service Cost 5,814,366$ 5,591,795$ 4,747,270$ 4,630,445$ 4,896,054$ Interest on Total Pension Liability 14,133,635 13,280,416 12,479,374 11,705,847 11,071,603 Difference Between Expected and Actual Experience 1,515,266 143,288 424,701 (1,153,098) - Changes in Assumptions (1,071,908) 11,868,431 - (3,063,979) - Benefit Payments Including Refunds of Employee Contributions (7,813,178) (7,174,299) (6,924,924) (6,490,975) (5,952,108)

Net Change in Total Pension Liability 12,578,181 23,709,631 10,726,421 5,628,240 10,015,549 Total Pension Liability - Beginning 198,229,239 174,519,608 163,793,187 158,164,947 148,149,398 Total Pension Liability - Ending (A) 210,807,420$ 198,229,239$ 174,519,608$ 163,793,187$ 158,164,947$

PLAN FIDUCIARY NET POSITIONPlan to Plan Resource Movement (352)$ (12,085)$ (14,804)$ -$ -$ Contributions - Employer 5,854,476 5,787,085 4,542,710 4,084,403 3,736,119 Contributions - Employee 2,316,633 2,035,009 1,806,428 1,717,710 1,692,897 Net Investment Income 11,853,239 13,995,959 610,779 2,751,766 18,471,003 Benefit Payments Including Refunds of Employee Contributions (7,813,178) (7,174,299) (6,924,924) (6,490,975) (5,952,108) Administrative Expense (218,711) (185,896) (76,770) (141,777) - Other Miscellaneous Income/(Expense) (415,336) - - - -

Net Change in Fiduciary Net Position 11,576,771 14,445,773 (56,581) 1,921,127 17,947,911 Plan Fiduciary Net Position - Beginning 140,354,672 125,908,899 125,965,480 124,044,353 106,096,442 Plan Fiduciary Net Position - Ending (B) 151,931,443$ 140,354,672$ 125,908,899$ 125,965,480$ 124,044,353$

Plan Net Pension Liability/(Asset) - Ending (A-B) 58,875,977$ 57,874,567$ 48,610,709$ 37,827,707$ 34,120,594$

Plan Fiduciary Net Position as a Percentage of the 72.07% 70.80% 72.15% 76.91% 78.43% Total Pension Liability

Covered Payroll 21,349,657$ 20,437,848$ 19,250,893$ 18,457,545$ 18,752,360$

Plan Net Pension Liability/(Asset) as a Percentage of Covered Payroll 275.77% 283.17% 252.51% 204.94% 181.95%

*Amounts presented above were determined as of 6/30. Additional years will be presented as they become available.


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Contributions in

* Last 10 Fiscal Years Relation to ContributionsActuarially Actuarially Contributions as a % of

Determined Determined Deficiency Covered CoveredContribution Contribution (Excess) Payroll Payroll

2019Miscellaneous Plan 18,137,873$ (18,137,873)$ -$ 108,992,258$ 16.64 %Safety Plan 7,132,089 (7,132,089) - 21,776,650 32.75 %

Total 25,269,962$ (25,269,962)$ -$ 130,768,908$ 19.32 %


Total 21,515,382$ (21,515,382)$ -$ 128,204,812$ 16.78 %


Total 20,310,319$ (20,310,319)$ -$ 122,374,198$ 16.60 %


Total 16,981,901$ (16,981,901)$ -$ 118,951,822$ 14.28 %


Total 15,318,714$ (15,318,714)$ -$ 115,317,758$ 13.28 %

2014Miscellaneous Plan 10,606,484$ (11,121,405)$ (514,921)$ 95,493,743$ 11.11 %Safety Plan 3,736,119 (3,736,119) - 18,752,360 19.92 %

Total 14,342,603$ (14,857,524)$ (514,921)$ 114,246,103$ 12.55 %

* Amounts presented above were determined as of 6/30. Additional years will be presented as they become available.

COUNTY OF BUTTE, CALIFORNIA OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN SCHEDULE OF CHANGES TO NET OPEB LIABILITY


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Last 10 Fiscal Years* OPEB

2019 2018TOTAL OPEB LIABILITY

Service Cost 2,972,757$ 3,705,783$ Interest on Total OPEB Liability 3,060,226 2,658,706 Difference Between Expected and Actual Experience - - Changes in Assumptions (8,111,890) (5,503,188) Benefit Payments Including Refunds of Employee Contributions (3,564,731) (3,574,630)

Net Change in Total OPEB Liability (5,643,638) (2,713,329) Total OPEB Liability - Beginning 69,767,772 72,481,101 Total OPEB Liability - Ending (A) 64,124,134$ 69,767,772$

PLAN FIDUCIARY NET POSITIONContributions - Employer 4,608,778 5,536,614 Net Investment Income 415,062 103,079 Benefit Payments Including Refunds of Employee Contributions (3,564,731) (3,574,630) Administrative Expense (2,525) (2,693) Other (1,847) -

Net Change in Fiduciary Net Position 1,454,737 2,062,370 Plan Fiduciary Net Position - Beginning 4,447,401 2,385,031 Plan Fiduciary Net Position - Ending (B) 5,902,138$ 4,447,401$

Net OPEB Liability - Ending (A-B) 58,221,996$ 65,320,371$

Plan Fiduciary Net Position as a Percentage of the 9.20% 6.37% Total OPEB Liability

Covered Payroll 125,577,641$ 137,970,100$

Plan Net OPEB Liability/(Asset) as a Percentage of Covered Payroll 46.36% 47.34%

* Amounts presented above were determined as of 6/30. Additional years will be presented as they become available.

COUNTY OF BUTTE, CALIFORNIA OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN

SCHEDULE OF PLAN CONTRIBUTIONS YEAR ENDED JUNE 30, 2019

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Contributions in* Last 10 Fiscal Years Relation to Contributions

Actuarially Actuarially Contributions as a % ofDetermined Determined Deficiency Covered CoveredContribution Contribution (Excess) Payroll Payroll

2019 5,756,923$ 4,608,778$ (1,148,145)$ 125,577,641$ 3.67 %

2018 6,003,319$ 5,536,614$ (466,705)$ 137,970,100$ 4.01 % Notes to Required Supplementary Information This information is intended to help users assess the County’s OPEB plan’s status on a going-concern basis, assess progress made in accumulating assets to pay benefits when due, and make comparisons with other public employers.

MAJOR GOVERNMENTAL FUNDS

COUNTY OF BUTTE, CALIFORNIA BUDGETARY COMPARISON SCHEDULE

GENERAL FUND YEAR ENDED JUNE 30, 2019

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Budgeted Amounts Variance with

Original Final Actual Final BudgetREVENUES

Taxes 71,338,000$ 71,338,000$ 73,039,545$ 1,701,545$ Licenses and Permits 3,596,581 3,596,581 4,060,545 463,964 Fines, Forfeitures, and Penalties 5,004,078 5,019,635 6,213,024 1,193,389 Use of Money and Property 4,397,949 4,371,949 6,158,611 1,786,662 Aid from Other Governments 44,759,173 57,477,196 54,223,058 (3,254,138) Charges for Services 22,823,623 23,499,742 22,731,475 (768,267) Miscellaneous Revenue 3,181,366 3,612,395 4,528,726 916,331

Total Revenues 155,100,770 168,915,498 170,954,984 2,039,486

EXPENDITURESGeneral Government:

Assessor:Salaries and Benefits 3,337,879 3,326,398 3,112,208 214,190 Services and Supplies 229,238 240,719 240,718 1 Other Charges 41,511 41,511 40,192 1,319 Special Items 381,039 381,039 351,985 29,054

Auditor-Controller:Salaries and Benefits 1,888,729 1,884,225 1,749,228 134,997 Services and Supplies 181,198 185,702 185,702 - Other Charges 12,561 12,561 12,561 - Special Items (236,820) (236,820) (247,167) 10,347

Board of Supervisors:Salaries and Benefits 826,140 826,140 725,488 100,652 Services and Supplies 175,369 175,369 144,340 31,029 Other Charges 6,369 6,369 6,369 - Special Items 1,124,222 1,124,222 1,119,190 5,032

Clerk-Recorder:Salaries and Benefits 2,303,150 2,276,650 1,917,231 359,419 Services and Supplies 1,653,728 1,498,763 1,194,702 304,061 Other Charges 178,874 179,042 179,042 - Capital Assets - 451,297 446,352 4,945 Special Items 673,499 673,499 608,407 65,092

County Administration:Salaries and Benefits 3,319,136 3,319,136 3,122,394 196,742 Services and Supplies 1,075,057 1,355,339 824,777 530,562 Other Charges 20,964 365,569 227,826 137,743 Capital Assets - 308,542 50,134 258,408 Special Items (676,683) (676,683) (693,218) 16,535

County Counsel:Salaries and Benefits 1,547,371 1,547,371 1,506,571 40,800 Services and Supplies 810,781 810,781 528,168 282,613 Other Charges 15,174 15,174 15,174 - Special Items (1,561,458) (1,561,458) (1,567,242) 5,784

Continued

COUNTY OF BUTTE, CALIFORNIA BUDGETARY COMPARISON SCHEDULE (CONTINUED)


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EXPENDITURES Original Final Actual Final BudgetGeneral Government (Continued)

General Rev & Trsfrs:Services and Supplies -$ 10$ 10$ -$ Special Items - 250,000 175,937 74,063

General Services:Salaries and Benefits 4,532,466 4,480,466 3,988,403 492,063 Services and Supplies 4,455,157 17,123,272 14,485,907 2,637,365 Other Charges 97,797 142,486 142,485 1 Capital Assets - 12,000 10,822 1,178 Special Items (5,780,345) (4,587,749) (4,587,749) -

General Fund Contingencies:Appropriation for Contingencies 7,200,000 2,815,110 - 2,815,110

Human Resources: - Salaries and Benefits 2,286,293 2,221,293 1,997,119 224,174 Services and Supplies 476,498 535,764 533,111 2,653 Other Charges - - - - Special Items (731,753) (726,019) (726,020) 1

Information Systems:Salaries and Benefits 2,989,341 2,921,184 2,780,871 140,313 Services and Supplies 1,884,361 1,884,361 1,722,766 161,595 Other Charges 21,529 25,796 25,796 - Capital Assets - 131 130 1 Special Items (2,351,694) (2,287,935) (2,287,936) 1

Treasurer-Tax Collector:Salaries and Benefits 2,162,164 2,162,164 2,061,774 100,390 Services and Supplies 1,060,115 1,059,365 874,366 184,999 Other Charges 12,356 13,106 12,549 557 Special Items 137,554 137,554 115,467 22,087

Nondepartmental:Services and Supplies 2,250,078 2,143,843 2,138,293 5,550 Other Charges (1,217) (1,217) (1,218) 1 Special Items (1,748,548) (1,744,053) (1,743,997) (56)

Total General Government 36,279,180 47,111,389 37,520,018 9,591,371

Public Protection:Agriculture:

Salaries and Benefits 2,112,178 2,078,782 1,779,008 299,774 Services and Supplies 286,083 286,083 253,826 32,257 Other Charges 28,189 61,585 61,585 - Special Items 191,727 191,727 179,685 12,042

Development Services:Salaries and Benefits 3,618,873 3,618,873 3,007,634 611,239 Services and Supplies 781,169 621,596 432,585 189,011 Other Charges 18,221 31,157 31,157 - Capital Assets - 32,002 32,002 - Special Items 1,004,112 1,023,747 1,023,747 -



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EXPENDITURES Original Final Actual Final BudgetPublic Protection (Continued):

District Attorney:Salaries and Benefits 11,345,432$ 11,323,378$ 9,912,219$ 1,411,159$ Services and Supplies 1,529,094 1,529,094 1,070,544 458,550 Other Charges 98,244 120,298 120,298 - Special Items 808,437 808,437 762,007 46,430

Fire:Salaries and Benefits 159,092 170,392 121,470 48,922 Services and Supplies 17,384,250 17,698,911 17,149,135 549,776 Other Charges 94,749 94,749 93,300 1,449 Capital Assets 1,224,496 1,666,022 89,867 1,576,155 Special Items 741,717 774,717 770,635 4,082

Grand Jury:Services and Supplies 122,314 122,314 78,905 43,409 Special Items 52,376 52,376 52,344 32

Probation:Salaries and Benefits 16,463,606 16,463,606 15,555,865 907,741 Services and Supplies 3,571,078 3,568,022 2,994,686 573,336 Other Charges 1,609,603 1,635,182 1,635,182 - Capital Assets 70,843 70,843 40,801 30,042 Special Items 1,641,467 1,641,467 1,621,651 19,816

PW - General Fund:Salaries and Benefits 558,533 558,533 508,880 49,653 Services and Supplies 588,125 604,228 143,296 460,932 Other Charges 166,318 824,318 698,976 125,342 Special Items 25,948 26,345 26,345 -

Sheriff-Coroner:Salaries and Benefits 34,688,417 35,486,334 34,758,818 727,516 Services and Supplies 11,423,736 12,028,935 11,506,465 522,470 Other Charges 888,305 1,478,123 1,478,123 - Capital Assets 184,417 331,102 225,149 105,953 Special Items 4,927,118 4,271,409 3,836,123 435,286

Water and Resource Conservation:Salaries and Benefits 544,683 544,683 464,188 80,495 Services and Supplies 619,189 618,778 456,520 162,258 Other Charges 750 750 92 658 Special Items 67,597 68,008 68,008 -

Nondepartmental:Services and Supplies 3,857,937 3,857,937 3,746,847 111,090 Other Charges 1,492,324 1,594,064 1,594,058 6 Special Items 117,272 117,272 117,216 56

Total Public Protection 125,108,019 128,096,179 118,499,242 9,596,937



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EXPENDITURES Original Final Actual Final BudgetEducation:

Farm Home and 4 H:Salaries and Benefits 203,117$ 203,117$ 182,876$ 20,241$ Services and Supplies 49,142 48,158 41,385 6,773 Other Charges 6,000 6,984 6,983 1 Special Items 118,911 118,911 118,884 27

Library:Salaries and Benefits 1,916,039 1,952,255 1,831,168 121,087 Services and Supplies 466,048 578,601 567,365 11,236 Other Charges 71,476 71,911 71,910 1 Special Items 1,074,305 1,082,420 1,082,419 1

Total Education 3,905,038 4,062,357 3,902,990 159,367 Recreation and Culture:

General Services:Services and Supplies - - - -

Total Recreation and Culture - - - -

Debt Service 9,236 9,236 9,235 1 Total Expenditures 165,301,473 179,279,161 159,931,485 19,347,676

EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (10,200,703) (10,363,663) 11,023,499 21,387,162

OTHER FINANCING SOURCES (USES)Transfers In 17,404,606 24,806,870 1,764,384 (23,042,486) Transfers Out (22,878,811) (31,992,304) (6,674,431) 25,317,873

Total Other Financing Sources (Uses) (5,474,205) (7,185,434) (4,910,047) 2,275,387

NET CHANGE IN FUND BALANCES (15,674,908) (17,549,097) 6,113,452 23,662,549

Fund Balances - Beginning 48,783,612 48,783,612 48,783,612 -

FUND BALANCES - ENDING 33,108,704$ 31,234,515$ 54,897,064$ 23,662,549$


SOCIAL SERVICES FUND YEAR ENDED JUNE 30, 2019

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Taxes -$ -$ -$ -$ Licenses and Permits 35,000 35,000 41,148 6,148 Fines, Forfeitures, and Penalties 19,500 19,500 7,524 (11,976) Use of Money and Property 88,600 88,600 111,590 22,990 Aid from Other Governments 137,335,421 139,365,728 131,505,039 (7,860,689) Charges for Services 329,880 549,880 491,985 (57,895) Miscellaneous Revenue 13,000 13,000 11,275 (1,725)

Total Revenues 137,821,401 140,071,708 132,168,561 (7,903,147)

EXPENDITURESPublic Protection:

Salaries and Benefits 506,857 556,778 429,724 127,054 Services and Supplies 37,245 37,245 12,924 24,321 Other Charges 205,000 205,000 62,629 142,371

Public Assistance:Salaries and Benefits 47,622,938 48,230,668 44,214,249 4,016,419 Services and Supplies 11,412,243 9,462,617 7,713,015 1,749,602 Other Charges 78,865,166 82,497,347 78,297,326 4,200,021

Total Expenditures 138,649,449 140,989,655 130,729,867 10,259,788

EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (828,048) (917,947) 1,438,694 2,356,641

OTHER FINANCING SOURCES (USES)Transfers In 21,613,906 21,613,906 245,882 (21,368,024) Transfers Out (23,531,943) (23,531,943) (2,077,133) 21,454,810

Total Other Financing Sources (Uses) (1,918,037) (1,918,037) (1,831,251) 86,786

NET CHANGE IN FUND BALANCES (2,746,085) (2,835,984) (392,557) 2,443,427




BEHAVIORAL HEALTH FUND YEAR ENDED JUNE 30, 2019

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Fines, Forfeitures, and Penalties 135,955$ 135,955$ 102,729$ (33,226)$ Use of Money and Property 203,752 203,752 507,795 304,043 Aid from Other Governments 70,133,205 73,045,669 61,127,652 (11,918,017) Charges for Services 2,091,158 2,154,488 1,866,540 (287,948) Miscellaneous Revenue 198,200 210,200 25,193 (185,007)

Total Revenues 72,762,270 75,750,064 63,629,909 (12,120,155)

EXPENDITURESHealth and Sanitation:

Salaries and Benefits 36,755,813 34,447,270 33,372,990 1,074,280 Services and Supplies 33,478,910 39,462,228 35,164,093 4,298,135 Other Charges 2,091,268 2,116,268 1,463,450 652,818 Capital Assets 304,995 419,995 363,612 56,383 Special Items 2,500 7,500 2,600 4,900


EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 128,784 (703,197) (6,736,836) (6,033,639)

OTHER FINANCING SOURCES (USES)Transfers In 12,836,884 13,668,865 976,598 (12,692,267) Transfers Out (11,800,925) (12,517,906) (447,799) 12,070,107

Total Other Financing Sources (Uses) 1,035,959 1,150,959 528,799 (622,160)

NET CHANGE IN FUND BALANCES 1,164,743 447,762 (6,208,037) (6,655,799)


FUND BALANCES - ENDING 19,128,593$ 18,411,612$ 11,755,813$ (6,655,799)$


ROAD FUND YEAR ENDED JUNE 30, 2019

(100)



Licenses and Permits 95,000$ 95,000$ 123,016$ 28,016$ Fines, Forfeitures, and Penalties 10,000 10,000 8,551 (1,449) Use of Money and Property 64,000 64,000 169,503 105,503 Aid from Other Governments 27,368,731 27,368,731 17,081,893 (10,286,838) Charges for Services 2,686,453 3,301,453 3,588,073 286,620 Miscellaneous Revenue 117,200 117,200 193,280 76,080

Total Revenues 30,341,384 30,956,384 21,164,316 (9,792,068)

EXPENDITURESPublic Way and Facilities:

Salaries and Benefits 8,436,334 8,436,334 8,124,443 311,891 Services and Supplies 21,422,471 22,915,572 11,942,438 10,973,134 Other Charges 1,646,760 1,628,457 1,628,457 - Capital Assets 755,543 1,138,691 72,506 1,066,185 Appropriation for Contingencies 1,000,000 - - -


EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (2,919,724) (3,162,670) (603,528) 2,559,142

OTHER FINANCING SOURCES (USES)Transfers In - - 1,742,026 1,742,026 Transfers Out - - (199,688) (199,688)

Total Other Financing Sources (Uses) - - 1,542,338 1,542,338

NET CHANGE IN FUND BALANCES (2,919,724) (3,162,670) 938,810 4,101,480


FUND BALANCES - ENDING 517,318$ 274,372$ 4,375,852$ 4,101,480$

COUNTY OF BUTTE, CALIFORNIA NOTE TO REQUIRED SUPPLEMENTARY INFORMATION


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BUDGETARY INFORMATION Budgets are prepared on the modified accrual basis of accounting consistent with GAAP. In accordance with the provisions of Sections 29000 and 29143, inclusive, of the California Government Code and other statutory provisions, commonly known as the County Budget Act, the County prepares a budget for each fiscal year on or before August 30. Budgeted expenditures are enacted into law through the passage of an Appropriation Resolution. This ordinance mandates the maximum authorized expenditures for the fiscal year and cannot be exceeded except by subsequent amendments to the budget by the County’s Board of Supervisors. An operating budget is adopted each fiscal year for all Governmental Funds except. Expenditures are controlled at the object level within budget units for the County. The object level within a budget unit is the level at which expenditures may not legally exceed appropriations. Any amendments or transfers of appropriations between object levels within the same budget unit or between departments or funds are authorized by the County Administrative Officer’s office and must be approved by the Board of Supervisors. The Board of Supervisors must approve supplementary appropriations normally financed by unanticipated revenues during the year. Pursuant to Board Resolution, the County Administrative Officer is authorized to approve transfers and revision of appropriations under $50,000 within a single budget unit as deemed necessary and appropriate. Budgeted amounts in the budgetary financial schedules are reported as originally adopted and as amended during the fiscal year by resolutions approved by the Board of Supervisors. The budget approved by the Board of Supervisors for the General Fund includes budgeted expenditures and reimbursements for amounts disbursed on behalf of other Governmental Funds. Actual reimbursements for these items have been eliminated in the accompanying budgetary financial schedules. Accordingly, the related budgets for these items have also been eliminated in order to provide a meaningful comparison of actual and budgeted results of operations. The budgets for the governmental funds may include an object level known as “intrafund transfers” in the charges for appropriations. This object level is an accounting mechanism used by the County to show reimbursements between operations within the same fund (an example would be the General Fund).

SUPPLEMENTARY INFORMATION

NONMAJOR GOVERNMENTAL FUNDS

COUNTY OF BUTTE, CALIFORNIA

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NONMAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS Special Revenue funds are established to finance particular governmental activities and are financed by specific taxes or other revenues. Such funds are authorized by statutory provisions to pay for certain activities of a continuing nature. The nonmajor Special Revenue funds are listed below: The Public Health Fund was established to provide public health services to the residents of Butte County. The Equipment Replacement Fund was established to provide financing for equipment purchases. The Transit Fund was established to account for the local transportation tax funds. The Housing and Community Development Fund accounts for revenues and expenditures relating to housing and community improvement and development. The Fish and Game Fund is used to account for fines and forfeitures received under Section 13003 of the State of California Fish and Game Code and for other revenue and expenditures for the propagation and conservation of fish and game. The Board of Supervisors authorizes expenditures on the advice of the Fish and Game Commission. The Child Support Services Fund was established by AB 196, AB 150, and SB 542 during fiscal year 2000-01 to provide separate fund accountability as required. These legislative bills mandated that all Family Support Divisions located in the District Attorney’s Offices become separate and independent departments. Child Support Services establishes paternity, obtains and enforces court orders for child support, collects and distributes payments, and provides community outreach about those services for the benefit of minor children. The County Service Areas Funds account for special district funds that provide sewer, drainage, fire, and street lighting and maintenance to specific areas in the County and are financed by property taxes and user charges. The IHSS Public Authority Fund allows for the maintenance of a registry and referral system to assist consumers in finding qualified in-home supportive services (IHSS) personnel as well as training of and support for providers and recipients of IHSS. Revenues primarily come from grants. The Impact Fee Fund was established to account for Impact Fees, Mitigation Fees, or Local Agency Improvement Fees that are charged by local agencies to developers for the purpose of defraying the cost of public facilities that will be needed in relation to the development project. The Disaster Recovery Fund was established to account for revenues received intended to be used to aid the county in the recovery process post disasters.


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NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) DEBT SERVICE FUND is used to account for the accumulation of resources for, and the payment of, general long-term debt. CAPITAL PROJECTS FUND is used to account for financial resources to be used for the acquisition of land or acquisition or construction of major facilities other than those financed by the proprietary fund types. PERMANENT FUND is used to account for and report resources that are restricted to the extent that only earnings, and not principal, may be used for purposes that support the reporting government’s programs, that is, for the benefit of the government or its citizenry.

COUNTY OF BUTTE, CALIFORNIA COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2019

(104)

Housing andPublic Equipment Community Fish andHealth Replacement Transit Development Game

ASSETS

Cash and Investments 13,108,540$ 6,986,075$ 70,723$ 313,941$ 85,099$ Cash w ith Fiscal Agent - - - - - Imprest Cash 7,815 - - - - Interest Receivable 56,802 29,542 3,662 1,249 369 Accounts Receivable 64,302 - - - - Due from Other Governments 1,588,306 - 304,625 - - Prepaid Items - - - - - Loans Receivable - - - 2,646,731 -

Total Assets 14,825,765$ 7,015,617$ 379,010$ 2,961,921$ 85,468$

LIABILITIES AND FUND BALANCES

Liabilities:Due to Other Funds -$ -$ -$ -$ -$ Accounts Payable 596,108 3,571 1,135 5 7,794 Accrued Payroll 498,803 - - - - Unearned Revenue 6,887 - - - - Deposits from Others 520 - - - -

Total Liabilities 1,102,318 3,571 1,135 5 7,794

Deferred Inflow s of Resources:Unavailable Revenue 198,567 - - - -

Fund Balances:Nonspendable 7,815 - - - - Restricted 13,517,065 7,012,046 377,875 2,961,916 77,674

Total Fund Balances 13,524,880 7,012,046 377,875 2,961,916 77,674

Total Liabilities, Deferred Inflow sof Resources and Fund Balances 14,825,765$ 7,015,617$ 379,010$ 2,961,921$ 85,468$

Special Revenue Funds

COUNTY OF BUTTE, CALIFORNIA COMBINING BALANCE SHEET (CONTINUED)


(105)

ASSETS

Cash and InvestmentsCash w ith Fiscal AgentImprest CashInterest ReceivableAccounts ReceivableDue from Other GovernmentsPrepaid ItemsLoans Receivable

Total Assets


Liabilities:Due to Other FundsAccounts PayableAccrued PayrollUnearned RevenueDeposits from Others

Total Liabilities

Deferred Inflow s of Resources:Unavailable Revenue

Fund Balances:NonspendableRestricted

Total Fund Balances

Total Liabilities, Deferred Inflow sof Resources and Fund Balances

Child CountySupport Service IHSS Public Impact DisasterServices Areas Authority Fees Recovery

863,652$ 10,010,304$ 135,117$ 9,310,832$ 633,878$ - - - - -

1,943 - - - - 4,481 43,816 - 40,092 821

- - - 32,741 - - - - - -

1,194 - - - - - - - - -

871,270$ 10,054,120$ 135,117$ 9,383,665$ 634,699$

-$ 82,942$ -$ -$ -$ 6,576 32,862 626 - -

280,263 - 292 - - - - - - -

172 - - - - 287,011 115,804 918 - -

- - - - -

3,137 - - - - 581,122 9,938,316 134,199 9,383,665 634,699 584,259 9,938,316 134,199 9,383,665 634,699

871,270$ 10,054,120$ 135,117$ 9,383,665$ 634,699$


COUNTY OF BUTTE, CALIFORNIA COMBINING BALANCE SHEET (CONTINUED)


(106)

ASSETS

Cash and InvestmentsCash w ith Fiscal AgentImprest CashInterest ReceivableAccounts ReceivableDue from Other GovernmentsPrepaid ItemsLoans Receivable

Total Assets


Liabilities:Due to Other FundsAccounts PayableAccrued PayrollUnearned RevenueDeposits from Others

Total Liabilities

Deferred Inflow s of Resources:Unavailable Revenue

Fund Balances:NonspendableRestricted

Total Fund Balances

Total Liabilities, Deferred Inflow sof Resources and Fund Balances

Debt CapitalService Projects PermanentFund Fund Fund Total

12,759,534$ 4,639,600$ 16,856$ 58,934,151$ 342,591 - - 342,591

- - - 9,758 57,387 20,502 73 258,796

- - - 97,043 - - - 1,892,931 - - - 1,194 - - - 2,646,731

13,159,512$ 4,660,102$ 16,929$ 64,183,195$

443$ -$ -$ 83,385$ 5,000 232,565 - 886,242

- - - 779,358 - - - 6,887 - - - 692

5,443 232,565 - 1,756,564

- - - 198,567

- - - 10,952 13,154,069 4,427,537 16,929 62,217,112 13,154,069 4,427,537 16,929 62,228,064

13,159,512$ 4,660,102$ 16,929$ 64,183,195$

COUNTY OF BUTTE, CALIFORNIA COMBINING STATEMENT OF REVENUE, EXPENDITURES,

AND CHANGES IN FUND BALANCE YEAR ENDED JUNE 30, 2019

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Housing andPublic Equipment Community Fish andHealth Replacement Transit Development Game

REVENUESTaxes -$ -$ -$ -$ -$ Licenses and Permits 81,715 - - - - Fines, Forfeits, and Penalties 226,437 - - - 13,760 Revenue from Use of Money and Property 467,612 220,723 15,837 21,898 3,236 Aid from Other Governments 13,561,790 - 3,219,897 245,396 - Charges for Services 3,488,656 - - - - Other 24,304 469,972 - - -

Total Revenues 17,850,514 690,695 3,235,734 267,294 16,996


General Government - 353,300 - - - Public Protection - 1,776,965 - - 41,255 Public Ways and Facilities - - 1,813,918 - - Health and Sanitation 20,196,465 - - - - Public Assistance - - - 1,557,744 - Recreation and Cultural Services - - - - -

Debt Service:Principal - - - - - Interest - - - - -

Total Expenditures 20,196,465 2,130,265 1,813,918 1,557,744 41,255

EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (2,345,951) (1,439,570) 1,421,816 (1,290,450) (24,259)

OTHER FINANCING SOURCES (USES)Transfers in 724,304 2,390,229 - 119,431 - Transfers out (157,577) (906,253) (1,307,653) (119,431) -

Total Other Financing Sources (Uses) 566,727 1,483,976 (1,307,653) - -

NET CHANGE IN FUND BALANCES (1,779,224) 44,406 114,163 (1,290,450) (24,259)

Fund Balances - Beginning 15,304,104 6,967,640 263,712 4,252,366 101,933

FUND BALANCES - ENDING 13,524,880$ 7,012,046$ 377,875$ 2,961,916$ 77,674$



AND CHANGES IN FUND BALANCE (CONTINUED) YEAR ENDED JUNE 30, 2019

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REVENUESTaxesLicenses and PermitsFines, Forfeits, and PenaltiesRevenue from Use of Money and PropertyAid from Other GovernmentsCharges for ServicesOther

Total Revenues


General GovernmentPublic ProtectionPublic Ways and FacilitiesHealth and SanitationPublic AssistanceRecreation and Cultural Services

Debt Service:PrincipalInterest

Total Expenditures

EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES

OTHER FINANCING SOURCES (USES)Transfers inTransfers out

Total Other Financing Sources (Uses)

NET CHANGE IN FUND BALANCES

Fund Balances - Beginning

FUND BALANCES - ENDING

Child CountySupport Service IHSS Public Impact DisasterServices Areas Authority Fees Recovery

-$ 961,788$ -$ -$ -$ - - - - - - - - - -

31,629 315,301 2,315 277,375 3,981 8,389,725 10,952 168,122 - -

54,593 564,591 - 701,276 - (1,699) - - - 850,000

8,474,248 1,852,632 170,437 978,651 853,981

- - - - - 8,383,092 504,521 - - 219,282

- 168,501 - - - - 187,723 - - - - - 188,672 - - - 146,466 - - -

- - - - - - - - - -

8,383,092 1,007,211 188,672 - 219,282

91,156 845,421 (18,235) 978,651 634,699

- - - - - (87,115) - - (125,000) - (87,115) - - (125,000) -

4,041 845,421 (18,235) 853,651 634,699

580,218 9,092,895 152,434 8,530,014 -

584,259$ 9,938,316$ 134,199$ 9,383,665$ 634,699$



AND CHANGES IN FUND BALANCE (CONTINUED) YEAR ENDED JUNE 30, 2019

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REVENUESTaxesLicenses and PermitsFines, Forfeits, and PenaltiesRevenue from Use of Money and PropertyAid from Other GovernmentsCharges for ServicesOther

Total Revenues


General GovernmentPublic ProtectionPublic Ways and FacilitiesHealth and SanitationPublic AssistanceRecreation and Cultural Services

Debt Service:PrincipalInterest

Total Expenditures

EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES

OTHER FINANCING SOURCES (USES)Transfers inTransfers out

Total Other Financing Sources (Uses)

NET CHANGE IN FUND BALANCES

Fund Balances - Beginning

FUND BALANCES - ENDING

Debt CapitalService Projects PermanentFund Fund Fund Total

-$ -$ -$ 961,788$ - - - 81,715 - - - 240,197

454,161 202,822 549 2,017,439 124,541 2,450 - 25,722,873

- 1,057,345 - 5,866,461 - - - 1,342,577

578,702 1,262,617 549 36,233,050

9,013 5,351,183 - 5,713,496 - - - 10,925,115 - - - 1,982,419 - - - 20,384,188 - - - 1,746,416 - - - 146,466

2,339,972 - - 2,339,972 2,638,126 - - 2,638,126 4,987,111 5,351,183 - 45,876,198

(4,408,409) (4,088,566) 549 (9,643,148)

3,758,428 2,370,069 - 9,362,461 - (497,594) - (3,200,623)

3,758,428 1,872,475 - 6,161,838

(649,981) (2,216,091) 549 (3,481,310)

13,804,050 6,643,628 16,380 65,709,374

13,154,069$ 4,427,537$ 16,929$ 62,228,064$


PUBLIC HEALTH FUND YEAR ENDED JUNE 30, 2019

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Licenses and Permits 90,000$ 90,000$ 81,715$ (8,285)$ Fines, Forfeitures, and Penalties 246,500 246,500 226,437 (20,063) Use of Money and Property 133,500 133,500 467,612 334,112 Aid from Other Governments 14,554,836 14,554,836 13,561,790 (993,046) Charges for Services 3,864,043 3,864,043 3,488,656 (375,387) Miscellaneous Revenue 13,075 13,075 24,304 11,229

Total Revenues 18,901,954 18,901,954 17,850,514 (1,051,440)


Salaries and Benefits 15,314,225 15,314,225 13,230,112 2,084,113 Services and Supplies 5,326,434 8,420,762 5,464,117 2,956,645 Other Charges 2,091,268 2,116,268 1,463,450 652,818 Special Items 2,500 7,500 2,600 4,900 Capital Assets 194,000 194,000 36,186 157,814


EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (4,026,473) (7,150,801) (2,345,951) 4,804,850

OTHER FINANCING SOURCES (USES)Transfers In 1,836,927 1,836,927 724,304 (1,112,623) Transfers Out (1,112,623) (1,112,623) (157,577) 955,046

Total Other Financing Sources (Uses) 724,304 724,304 566,727 (157,577)

NET CHANGE IN FUND BALANCES (3,302,169) (6,426,497) (1,779,224) 4,647,273




EQUIPMENT REPLACEMENT FUND YEAR ENDED JUNE 30, 2019

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Use of Money and Property 67,400$ 67,400$ 220,723$ 153,323$ Miscellaneous Revenue - - 469,972 469,972

Total Revenues 67,400 67,400 690,695 623,295


Services and Supplies 105,000 105,000 6,851 98,149 Other Charges 80,471 129,471 80,369 49,102 Capital Assets 427,000 460,000 266,080 193,920

Public Protection:Other Charges 5,968 5,941 5,904 37 Capital Assets 1,225,000 2,044,603 1,771,061 273,542

Total Expenditures 1,843,439 2,745,015 2,130,265 614,750


OTHER FINANCING SOURCES (USES)Transfers In 2,381,575 2,509,575 2,390,229 (119,346) Transfers Out (765,000) (913,800) (906,253) 7,547

Total Other Financing Sources (Uses) 1,616,575 1,595,775 1,483,976 (111,799)

NET CHANGE IN FUND BALANCES (159,464) (1,081,840) 44,406 1,126,246




TRANSIT FUND YEAR ENDED JUNE 30, 2019

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Use of Money and Property 5,000$ 5,000$ 15,837$ 10,837$ Aid from Other Governments 2,953,400 2,953,400 3,219,897 266,497

Total Revenues 2,958,400 2,958,400 3,235,734 277,334

EXPENDITURESPublic Way and Facilities:

Services and Supplies 1,641,264 1,804,463 1,804,462 1 Other Charges 9,483 9,456 9,456 -

Total Expenditures 1,650,747 1,813,919 1,813,918 1

EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 1,307,653 1,144,481 1,421,816 277,335

OTHER FINANCING SOURCES (USES)Transfers In - - - - Transfers Out (1,307,653) (1,307,653) (1,307,653) -

Total Other Financing Sources (Uses) (1,307,653) (1,307,653) (1,307,653) -

NET CHANGE IN FUND BALANCES - (163,172) 114,163 277,335

Fund Balances - Beginning 263,712 263,712 263,712 -

FUND BALANCES - ENDING 263,712$ 100,540$ 377,875$ 277,335$


HOUSING AND COMMUNITY DEVELOPMENT FUND YEAR ENDED JUNE 30, 2019

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Use of Money and Property 15,010$ 15,010$ 21,898$ 6,888$ Aid from Other Governments 304,600 1,296,918 245,396 (1,051,522)

Total Revenues 319,610 1,311,928 267,294 (1,044,634)

EXPENDITURESPublic Assistance:

Services and Supplies 164,350 454,960 104,204 350,756 Other Charges 491,000 1,683,485 1,453,540 229,945

Total Expenditures 655,350 2,138,445 1,557,744 580,701

EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (335,740) (826,517) (1,290,450) (463,933)

OTHER FINANCING SOURCES (USES)Transfers In 290,000 971,708 119,431 (852,277) Transfers Out (290,000) (951,708) (119,431) 832,277

Total Other Financing Sources (Uses) - 20,000 - (20,000)

NET CHANGE IN FUND BALANCES (335,740) (806,517) (1,290,450) (483,933)


FUND BALANCES - ENDING 3,916,626$ 3,445,849$ 2,961,916$ (483,933)$


FISH AND GAME FUND YEAR ENDED JUNE 30, 2019

(114)



Fines, Forfeitures, and Penalties 10,000$ 10,000$ 13,760$ 3,760$ Use of Money and Property 2,100 2,100 3,236 1,136

Total Revenues 12,100 12,100 16,996 4,896


Services and Supplies 35,500 35,500 18,779 16,721 Other Charges 22,497 22,497 22,476 21

Total Expenditures 57,997 57,997 41,255 16,742

NET CHANGE IN FUND BALANCES (45,897) (45,897) (24,259) 21,638




CHILD SUPPORT SERVICES FUND YEAR ENDED JUNE 30, 2019

(115)

Budgeted Amounts Variance withOriginal Final Actual Final Budget

REVENUESUse of Money and Property 15,000$ 15,000$ 31,629$ 16,629$ Aid from Other Governments 9,445,313 9,445,313 8,389,725 (1,055,588) Charges for Services 29,000 29,000 54,593 25,593 Miscellaneous Revenue 50 50 (1,699) (1,749)

Total Revenues 9,489,363 9,489,363 8,474,248 (1,015,115)


Salaries and Benefits 7,996,686 7,996,686 7,213,532 783,154 Services and Supplies 968,094 968,094 647,713 320,381 Other Charges 524,583 524,583 521,847 2,736


EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES - - 91,156 91,156

OTHER FINANCING SOURCES (USES)Transfers Out - - (87,115) (87,115)

Total Other Financing Sources (Uses) - - (87,115) (87,115)

NET CHANGE IN FUND BALANCES - - 4,041 4,041




COUNTY SERVICE AREAS FUND YEAR ENDED JUNE 30, 2019

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Taxes 806,993$ 806,993$ 961,788$ 154,795$ Use of Money and Property 57,932 57,932 315,301 257,369 Aid from Other Governments 11,786 11,786 10,952 (834) Charges for Services 547,323 547,323 564,591 17,268

Total Revenues 1,424,034 1,424,034 1,852,632 428,598


Services and Supplies 435,525 512,792 357,136 155,656 Other Charges 271,179 268,669 147,385 121,284 Appropriation for Contingencies 2,550 2,550 - 2,550

Public Way and Facilities:Services and Supplies 95,116 120,862 99,944 20,918 Other Charges 136,533 137,137 68,557 68,580 Appropriation for Contingencies 8,953 8,953 - 8,953

Health and Sanitation:Services and Supplies 271,179 268,669 147,384 121,285 Other Charges 68,552 84,990 40,339 44,651 Appropriation for Contingencies 2,550 2,550 - 2,550

Recreation and Culture:Services and Supplies 181,960 181,960 143,389 38,571 Other Charges 3,099 3,099 3,077 22 Appropriation for Contingencies 4,000 4,000 - 4,000

Debt Service 8,774 8,774 - 8,774 Total Expenditures 1,489,970 1,605,005 1,007,211 597,794

NET CHANGE IN FUND BALANCES (65,936) (180,971) 845,421 1,026,392




IHSS PUBLIC AUTHORITY FUND YEAR ENDED JUNE 30, 2019

(117)



Use of Money and Property -$ -$ 2,315$ 2,315$ Aid from Other Governments 252,922 252,922 168,122 (84,800)

Total Revenues 252,922 252,922 170,437 (82,485)

EXPENDITURESPublic Assistance:

Salaries and Benefits 293,404 93,404 50,936 42,468 Services and Supplies 62,600 262,600 134,502 128,098 Other Charges 5,235 5,235 3,234 2,001

Total Expenditures 361,239 361,239 188,672 172,567

NET CHANGE IN FUND BALANCES (108,317) (108,317) (18,235) 90,082




IMPACT FEES FUND YEAR ENDED JUNE 30, 2019

(118)



Use of Money and Property 38,241$ 38,241$ 277,375$ 239,134$ Charges for Services 553,000 553,000 701,276 148,276

Total Revenues 591,241 591,241 978,651 387,410

EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 591,241 591,241 978,651 387,410

OTHER FINANCING SOURCES (USES)Transfers In 40,000 200,000 - (200,000) Transfers Out (911,000) (1,071,000) (125,000) 946,000

Total Other Financing Sources (Uses) (871,000) (871,000) (125,000) 746,000

NET CHANGE IN FUND BALANCES (279,759) (279,759) 853,651 1,133,410




DISASTER RECOVERY FUND YEAR ENDED JUNE 30, 2019

(119)

Budgeted Amounts Variance withOriginal Final Actual Final Budget

REVENUESUse of Money and Property -$ -$ 3,981$ 3,981$ Miscellaneous Revenue - 1,330,000 850,000 (480,000)

Total Revenues - 1,330,000 853,981 (476,019)


Other Charges - 1,350,000 219,282 1,130,718 Total Expenditures - 1,350,000 219,282 1,130,718

NET CHANGE IN FUND BALANCES - (20,000) 634,699 654,699

Fund Balances - Beginning - - - -

FUND BALANCES - ENDING -$ (20,000)$ 634,699$ 654,699$


DEBT SERVICE FUND YEAR ENDED JUNE 30, 2019

(120)



Use of Money and Property 35,900$ 35,900$ 454,161$ 418,261$ Aid from Other Governments 125,000 125,000 124,541 (459)

Total Revenues 160,900 160,900 578,702 417,802


Services and Supplies 10,012 10,012 9,049 963 Other Charges (27) (27) (36) 9

Debt Service 5,150,008 5,368,165 4,978,098 390,067 Total Expenditures 5,159,993 5,378,150 4,987,111 391,039

EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (4,999,093) (5,217,250) (4,408,409) 808,841

OTHER FINANCING SOURCES (USES)Transfers In 5,201,600 5,419,757 3,758,428 (1,661,329) Transfers Out - - - -

Total Other Financing Sources (Uses) 5,201,600 5,419,757 3,758,428 (1,661,329)

NET CHANGE IN FUND BALANCES 202,507 202,507 (649,981) (852,488)


FUND BALANCES - ENDING 14,006,557$ 14,006,557$ 13,154,069$ (852,488)$


CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2019

(121)



Use of Money and Property 85,000$ 85,000$ 202,822$ 117,822$ Aid from Other Governments 2,553,852 2,553,852 2,450 (2,551,402) Charges for Services 1,057,345 1,057,345 1,057,345 - Miscellaneous Revenue - - - -

Total Revenues 3,696,197 3,696,197 1,262,617 (2,433,580)


Services and Supplies 152,992 986,231 2,020,133 (1,033,902) Other Charges 544,900 559,300 287,788 271,512 Capital Assets 9,349,427 9,091,788 3,043,262 6,048,526



OTHER FINANCING SOURCES (USES)Transfers In 4,247,017 4,837,017 2,370,069 (2,466,948) Transfers Out (865,867) (976,502) (497,594) 478,908

Total Other Financing Sources (Uses) 3,381,150 3,860,515 1,872,475 (1,988,040)

NET CHANGE IN FUND BALANCES (2,969,972) (3,080,607) (2,216,091) 864,516


FUND BALANCES - ENDING 3,673,656$ 3,563,021$ 4,427,537$ 864,516$


PERMANENT FUND YEAR ENDED JUNE 30, 2019

(122)



Use of Money and Property 194$ 194$ 549$ 355$ Total Revenues 194 194 549 355

EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 194 194 549 355

NET CHANGE IN FUND BALANCES 194 194 549 355


FUND BALANCES - ENDING 16,574$ 16,574$ 16,929$ 355$

INTERNAL SERVICE FUNDS


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INTERNAL SERVICE FUNDS

Internal Service Funds were established to account for the goods or services furnished by one County department or agency to other departments or agencies of the County, or to other governments, on a cost-reimbursement basis. The Self-Insurance Fund accounts for liability claims against the County, the administration of the insurance program, and associated legal and adjustment expenses. The Worker’s Compensation Insurance Fund accounts for disability, medical, and rehabilitation expenses and related costs associated with on-the-job injuries. The Unemployment Insurance Fund accounts for unemployment compensation claims filed against the County. The Medical Liability Insurance Fund accounts for medical compensation claims filed against the County. The Miscellaneous Insurance Fund accounts for financing of the County’s miscellaneous self-insurances. The Utilities Clearing Fund accounts for utilities provided to County departments.

COUNTY OF BUTTE, CALIFORNIA COMBINING STATEMENT OF NET POSITION

INTERNAL SERVICE FUNDS JUNE 30, 2019

(124)

Self Workers' Unemployment

Insurance Compensation InsuranceASSETS

Current Assets:Cash and Investments 2,499,950$ 10,571,705$ 211,405$ Cash and Investments with Fiscal Agent - 130,331 - Interest Receivable 10,561 47,967 982 Due from other governments - 1,527 -

Total Current Assets 2,510,511 10,751,530 212,387


Depreciable:Equipment 40,221 64,340 - Accumulated Depreciation (10,685) (36,760) -

Total Capital Assets, Net 40,221 64,340 - Total Noncurrent Assets 29,536 27,580 - Total Assets 2,540,047 10,779,110 212,387


Accounts Payable 82,269 2,163 - Accrued Salaries and Benefits 21 - - Claims and Judgments, Current Portion 600,000 2,000,000 -

Total Current Liabilities 682,290 2,002,163 -

Long-Term Liabilities:Claims and Judgments, Less Current Portion 803,000 5,931,000 -

Total Liabilities 1,485,290 7,933,163 -

NET POSITIONNet Investment in Capital Assets 29,536 27,580 - Unrestricted 1,025,221 2,818,367 212,387

Total Net Position 1,054,757$ 2,845,947$ 212,387$

COUNTY OF BUTTE, CALIFORNIA COMBINING STATEMENT OF NET POSITION (CONTINUED)

INTERNAL SERVICE FUNDS JUNE 30, 2019

(125)

Medical Miscellaneous UtilitiesLiability Insurance Clearing Total

ASSETSCurrent Assets:

Cash and Investments 12,534$ 971,106$ 192,268$ 14,458,968$ Cash and Investments with Fiscal Agent - - - 130,331 Interest Receivable 55 10,671 647 70,883 Due from other governments - - - 1,527

Total Current Assets 12,589 981,777 192,915 14,661,709


Depreciable:Equipment - - - 104,561 Accumulated Depreciation - - - (47,445)

Total Capital Assets, Net - - - 104,561 Total Noncurrent Assets - - - 57,116 Total Assets 12,589 981,777 192,915 14,718,825


Accounts Payable - - 30,208 114,640 Accrued Salaries and Benefits - - - 21 Claims and Judgments, Current Portion - - - 2,600,000

Total Current Liabilities - - 30,208 2,714,661

Long-Term Liabilities:Claims and Judgments, Less Current Portion - - - 6,734,000

Total Liabilities - - 30,208 9,448,661

NET POSITIONNet Investment in Capital Assets - - - 57,116 Unrestricted 12,589 981,777 162,707 5,213,048

Total Net Position 12,589$ 981,777$ 162,707$ 5,270,164$

COUNTY OF BUTTE, CALIFORNIA COMBINING STATEMENT OF REVENUES, EXPENSES,

AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2019

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Insurance Compensation InsuranceOPERATING REVENUES

Charges for Services 2,058,768$ 4,207,560$ 397,205$ Total Operating Revenues 2,058,768 4,207,560 397,205

OPERATING EXPENSESSalaries and Employee Benefits 13 6 288,982 Services and Supplies 894,611 831,750 3,498 Premiums, Claims, and Judgments 1,534,918 3,162,020 - Depreciation and Amortization 2,681 1,970 -

Total Operating Expenses 2,432,223 3,995,746 292,480

OPERATING INCOME (LOSS) (373,455) 211,814 104,725

NONOPERATING REVENUES (EXPENSES)Other Nonoperating Revenues - - - Interest Income 76,348 333,647 4,040

Total Nonoperating Revenues (Expenses) 76,348 333,647 4,040

NET INCOME BEFORE TRANSFERS (297,107) 545,461 108,765

Transfers out - - -

CHANGE IN NET POSITION (297,107) 545,461 108,765

Net Position - Beginning of Year 1,351,864 2,300,486 103,622

NET POSITION - ENDING 1,054,757$ 2,845,947$ 212,387$

COUNTY OF BUTTE, CALIFORNIA COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION (CONTINUED)

INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2019

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Medical Miscellaneous UtilitiesLiability Insurance Clearing Totals

OPERATING REVENUESCharges for Services 156,692$ 171,100$ 2,612,340$ 9,603,665$

Total Operating Revenues 156,692 171,100 2,612,340 9,603,665

OPERATING EXPENSESSalaries and Employee Benefits - - - 289,001 Services and Supplies 156,666 159,096 2,353,102 4,398,723 Premiums, Claims, and Judgments - - - 4,696,938 Depreciation and Amortization - - - 4,651

Total Operating Expenses 156,666 159,096 2,353,102 9,389,313

OPERATING INCOME (LOSS) 26 12,004 259,238 214,352

NONOPERATING REVENUES (EXPENSES)Other Nonoperating Revenues - 3,000,000 - 3,000,000 Interest Income 423 28,292 5,745 448,495

Total Nonoperating Revenues (Expenses) 423 3,028,292 5,745 3,448,495

NET INCOME BEFORE TRANSFERS 449 3,040,296 264,983 3,662,847

Transfers out - (2,096,658) (138,591) (2,235,249)

CHANGE IN NET POSITION 449 943,638 126,392 1,427,598

Net Position - Beginning of Year 12,140 38,139 36,315 3,842,566

NET POSITION - ENDING 12,589$ 981,777$ 162,707$ 5,270,164$

COUNTY OF BUTTE, CALIFORNIA COMBINING STATEMENT OF CASH FLOWS


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Insurance Compensation InsuranceCASH FLOWS FROM OPERATING ACTIVITIES

Cash Received from Customers 2,058,768$ 4,219,578$ 397,205$ Cash Paid to Suppliers for Goods and Services (2,301,530) (3,528,006) (5,170) Cash Paid to Employees for Services 8 - (288,982)

Net Cash Provided (Used) by Operating Activities (242,754) 691,572 103,053

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES

Insurance proceeds - - - Transfers Out - - -

Net Cash Provided (Used) by Noncapital Activities - - -

CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES

Payments Related to Acquisition of Capital Assets (14,775) (14,775) -

CASH FLOWS FROM INVESTING ACTIVITIESInterest Received (Paid) 75,709 324,547 3,622

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (181,820) 1,001,344 106,675

Cash and Cash Equivalents - Beginning 2,681,770 9,700,692 104,730

CASH AND CASH EQUIVALENTS - ENDING 2,499,950$ 10,702,036$ 211,405$

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES

Operating Income (Loss) (373,455)$ 211,814$ 104,725$ Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities:

Depreciation 2,681 1,970 - (Increase) Decrease in Assets:

Deposits With Others - - - Accounts Receivable - 12,018 -

Increase (Decrease) in Liabilities:Accounts Payable 19,020 (14,230) (1,672) Claims and Judgments 109,000 480,000 -

Net Cash Provided (Used) by Operating Activities (242,754)$ 691,572$ 103,053$

COUNTY OF BUTTE, CALIFORNIA COMBINING STATEMENT OF CASH FLOWS (CONTINUED)


(129)

Medical Miscellaneous UtilitiesLiability Insurance Clearing Totals

CASH FLOWS FROM OPERATING ACTIVITIESCash Received from Customers 156,692$ 171,100$ 2,612,340$ 9,615,683$ Cash Paid to Suppliers for Goods and Services (156,666) (159,096) (2,521,941) (8,672,409) Cash Paid to Employees for Services - - - (288,974)

Net Cash Provided (Used) by Operating Activities 26 12,004 90,399 654,300

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES

Insurance proceeds - 3,000,000 - 3,000,000 Transfers Out - (2,096,658) (138,591) (2,235,249)

Net Cash Provided (Used) by Noncapital Activities - 903,342 (138,591) 764,751

CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES

Payments Related to Acquisition of Capital Assets - - - (29,550)

CASH FLOWS FROM INVESTING ACTIVITIESInterest Received (Paid) 416 17,771 6,423 428,488

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 442 933,117 (41,769) 1,817,989

Cash and Cash Equivalents - Beginning 12,092 37,989 234,037 12,771,310

CASH AND CASH EQUIVALENTS - ENDING 12,534$ 971,106$ 192,268$ 14,589,299$

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES

Operating Income (Loss) 26$ 12,004$ 259,238$ 214,352$ Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities:

Depreciation - - - 4,651 (Increase) Decrease in Assets:

Deposits With Others - - - - Accounts Receivable - - - 12,018

Increase (Decrease) in Liabilities:Accounts Payable - - (168,839) (165,721) Claims and Judgments - - - 589,000

Net Cash Provided (Used) by Operating Activities 26$ 12,004$ 90,399$ 654,300$

FIDUCIARY FUND TYPES


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FIDUCIARY FUNDS

Fiduciary Funds account for assets held by the County in a trustee capacity, or as an agent for private organizations, other governmental units, or other funds.

AGENCY FUNDS The Other Agency Fund accounts for assets held for other governmental agencies and governmental units by the County in a fiduciary capacity. The Tax Resources Fund accounts for funds reserved for losses and property tax receipts apportioned to other local governmental agencies participating in the Teeter Plan.

COUNTY OF BUTTE, CALIFORNIA COMBINING STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES

AGENCY FUNDS JUNE 30, 2019

(131)

Tax

Other Resources TotalASSETS

Cash and Investments 37,831,512$ 9,644,563$ 47,476,075$ Due from Other Governments - - - Interest Receivable 40,321 267,361 307,682 Due from Other Funds 104,425 - 104,425 Property Tax Receivable - 11,573,258 11,573,258

Total Assets 37,976,258$ 21,485,182$ 59,461,440$

LIABILITIESDue to Other Funds 82,942$ -$ 82,942$ Due to Other Governments - 1,839,321 1,839,321 Agency Funds Held for Others 37,893,316 19,645,861 57,539,177

Total Liabilities 37,976,258$ 21,485,182$ 59,461,440$

COUNTY OF BUTTE, CALIFORNIA COMBINING STATEMENT OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES

AGENCY FUNDS YEAR ENDED JUNE 30, 2019

(132)

Balance Balance

July 1, 2018 Additions Deductions June 30, 2019OTHER

ASSETSCash and Investments 18,040,385$ 21,952,296$ -$ 37,831,512$ Interest Receivable 19,500 20,821 - 40,321 Due from Other Funds 95,341 9,084 - 104,425

Total Assets 18,155,226$ 21,982,201$ -$ 37,976,258$

LIABILITIESDue to Other Funds -$ 82,942$ -$ 82,942 Agency Funds Held for Others 18,155,226 21,899,259 - 37,893,316

Total Liabilities 18,155,226$ 21,982,201$ -$ 37,976,258$

TAX RESOURCES

ASSETSCash and Investments 7,219,739$ 2,424,824$ -$ 9,644,563$ Interest Receivable 204,428 62,933 - 267,361 Property Tax Receivable 10,585,742 987,516 - 11,573,258

Total Assets 18,009,909$ 3,475,273$ -$ 21,485,182$

LIABILITIESDue to Other Governments -$ 1,839,321$ -$ 1,839,321 Agency Funds Held for Others 18,009,909 1,635,952 - 19,645,861


TOTAL AGENCY FUNDS

ASSETSCash and Investments 25,260,124$ 24,377,120$ -$ 49,637,244$ Interest Receivable 223,928 83,754 - 307,682 Due from Other Funds 95,341 9,084 - 104,425 Property Tax Receivable 10,585,742 987,516 - 11,573,258

Total Assets 36,165,135$ 25,457,474$ -$ 59,461,440$

LIABILITIESDue to Other Funds -$ 82,942$ -$ 82,942$ Due to Other Governments - 1,839,321 - 1,839,321 Agency Funds Held for Others 36,165,135 23,535,211 - 59,700,346


STATISTICAL SECTION

Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial report for the relevant year.

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STATISTICAL SECTION

The information in this section is not covered by the Independent Auditor’s Report, but is presented as supplemental data for the benefit of the reader of the Comprehensive Annual Financial Report. The objectives of statistical section information are to provide financial statement users with additional historical perspective, context, and detail to assist in using the information in the financial statements, notes to financial statements, and required supplementary information to understand and assess a government’s economic condition.

CONTENTS FINANCIAL TRENDS These schedules contain trend information to help the reader understand how the County’s financial performance and well-being have changed over time. REVENUE CAPACITY These schedules contain trend information to help the reader assess the County’s most significant local revenue source, which is property tax. DEBT CAPACITY These schedules present information to help the reader assess the affordability of the County’s current levels of outstanding debt and the County’s ability to issue additional debt in the future. ECONOMIC AND DEMOGRAPHIC INFORMATION These schedules offer economic and demographic indicators to help the reader understand the environment within which the County’s financial activities take place. OPERATING INFORMATION These schedules contain service and infrastructure data to help the reader understand how the information in the County’s financial reports relates to the services the County provides and the activities it performs.

COUNTY OF BUTTE, CALIFORNIA NET POSITION BY COMPONENT

LAST TEN YEARS (ACCRUAL BASIS OF ACCOUNTING)

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2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Governmental activities:

Net investment in capital assets 263,205,332$ 243,321,441$ 209,052,322$ 209,080,492$ 191,735,949$ 168,982,913$ 151,756,436$ 132,252,207$ 111,632,904$ 97,471,299$

Restricted 49,225,674 78,363,897 84,780,705 79,227,923 16,595,483 95,931,964 136,834,213 116,407,518 123,419,064 117,376,387

Unrestricted 35,430,215 7,959,935 (9,893,841) 588,586 389,388,834 (210,556,320) (241,054,922) (224,485,012) (279,061,376) (284,917,542)

Total government net position 347,861,221 329,645,273 283,939,186 288,897,001 597,720,266 54,358,557 47,535,727 24,174,713 (44,009,408) (70,069,856)

Business-type activities:

Net investment in capital assets 7,162,066 8,912,181 19,287,944 10,161,697 (9,160,848) 11,295,555 16,065,466 19,313,442 23,616,009 29,614,244

Restricted 5,547,422 4,753,072 3,685,767 - - - - - - -

Unrestricted 9,326,821 8,799,943 2,489,032 15,111,391 34,433,936 14,404,403 10,768,515 9,058,961 5,896,317 14,108,687

Total business net position 22,036,309 22,465,196 25,462,743 25,273,088 25,273,088 25,699,958 26,833,981 28,372,403 29,512,326 43,722,931

Primary government:

Net investment in capital assets 270,367,398 252,233,622 228,340,266 219,242,189 182,575,101 180,278,468 167,821,902 151,565,649 135,248,913 127,085,543

Restricted 54,773,096 83,116,969 88,466,472 79,227,923 16,595,483 95,931,964 136,834,213 116,407,518 123,419,064 117,376,387

Unrestricted 44,757,037 16,759,878 (7,404,809) 15,699,977 423,822,770 (196,151,917) (230,286,407) (215,426,051) (273,165,059) (270,808,855)

Total primary government,

net position 369,897,531$ 352,110,469$ 309,401,929$ 314,170,089$ 622,993,354$ 80,058,515$ 74,369,708$ 52,547,116$ (14,497,082)$ (26,346,925)$

Source: Auditor-Controller, County of Butte

COUNTY OF BUTTE, CALIFORNIA NET POSITION BY COMPONENT


(135)

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Governmental activities

Expenses

General government 20,710,290$ 25,025,047$ 29,168,334$ 30,060,660$ 28,890,588$ 33,284,793$ 19,494,479$ 34,998,187$ 34,695,913$ 43,782,832$

Public protection 94,362,185 88,781,607 91,167,264 93,246,404 88,471,224 104,222,488 109,431,367 120,176,236 129,534,878 134,869,118

Public ways and facil ities 34,975,071 30,108,420 36,686,173 37,081,727 41,001,623 34,940,310 33,073,748 41,036,447 39,025,897 42,226,009

Health and sanitation 67,582,300 72,502,065 72,015,960 75,317,142 70,530,585 63,592,673 68,462,617 79,780,776 88,135,027 93,113,924

Public assistance 142,615,875 143,688,838 148,220,091 141,998,777 136,125,651 121,695,661 129,102,977 128,712,112 131,541,506 133,709,674

Education 3,291,233 2,805,328 2,959,473 3,208,699 2,486,523 3,382,972 3,256,166 3,827,098 3,788,074 4,145,220

Culture and recreation services 524,852 512,353 530,319 583,937 166,481 274,130 270,721 328,803 349,295 335,091

Interest on long-term debt 2,659,630 2,499,474 2,701,482 2,488,759 1,999,865 1,921,981 2,090,317 2,370,509 2,356,586 2,551,165

Total 366,721,436 365,923,132 383,449,096 383,986,105 369,672,540 363,315,008 365,182,392 411,230,168 429,427,176 454,733,033

Program revenue

Charges for services:

General government 16,567,360 21,694,710 22,092,523 19,859,373 10,020,782 8,482,864 17,099,501 21,707,525 19,375,841 20,884,629


Public ways and facil ities 4,082,071 2,225,165 2,216,854 2,286,810 1,057,902 347,898 857,994 3,915,390 3,878,290 4,521,364


Public assistance 711,842 676,610 1,079,724 1,012,741 316,723 373,010 1,138,165 407,561 391,865 540,657

Education 113,684 146,212 146,391 146,391 - 120,413 171,464 112,870 76,665 50,436

Culture and recreation services - - - - - 317,359 68,258 65,327 62,476 62,770

Operating grants and contributions 222,937,925 222,575,034 227,348,490 238,623,299 231,245,236 227,391,828 212,696,494 270,058,047 271,802,470 287,191,942

Capital grants and contributions 16,299,993 20,924,224 10,465,668 13,263,837 17,867,527 15,754,932 12,186,193 5,734,412 4,593,476 4,284,890

Total governmental activities

program revenues 275,566,524 284,706,583 279,534,119 290,164,949 272,051,210 265,011,150 256,688,107 318,540,301 318,339,195 336,900,340

Net expense (91,154,912) (81,216,549) (103,914,977) (93,821,156) (97,621,330) (98,303,858) (108,494,285) (92,689,867) (111,087,981) (117,832,693)

General revenue and transfers

Taxes:

Property taxes 49,534,039 49,822,100 47,576,400 46,504,613 47,223,804 62,251,988 58,629,417 59,712,848 63,166,249 67,764,536

Sales taxes 3,525,252 3,502,003 3,825,307 3,809,695 3,911,514 4,715,299 4,338,344 5,035,435 5,498,556 5,593,752

Other taxes and related revenues 1,031,960 1,010,109 942,242 1,022,342 1,311,434 986,621 1,302,226 474,438 598,373 643,045

Grants and contributions not restricted

to specific programs 17,253,122 15,503,952 16,753,325 17,747,085 17,353,808 15,399,497 34,030,358 - - -

Unrestricted investment earnings 4,832,431 3,218,361 3,053,171 1,751,760 3,167,371 3,801,898 3,042,352 4,375,159 4,886,590 9,413,433

Gain (Loss) on sale of assets - - - - - - - - - -

Miscellaneous 11,688,662 4,521,606 4,886,259 3,934,721 5,044,991 6,927,395 328,758 3,560,331 3,836,818 9,101,051

Transfers - - - 14,788 (24,770) - - 22,208 27,743 (743,572)

Total 87,865,466 77,578,131 77,036,704 74,785,004 77,988,152 94,082,698 101,671,455 73,180,419 78,014,329 91,772,245

Change in net position-

- governmental activities (3,289,446)$ (3,638,418)$ (26,878,273)$ (19,036,152)$ (19,633,178)$ (4,221,160)$ (6,822,830)$ (19,509,448)$ (33,073,652)$ (26,060,448)$

COUNTY OF BUTTE, CALIFORNIA CHANGES IN NET POSITION BY COMPONENT (CONTINUED)


(136)

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Business-type activites

Expenses

Sanitation 5,486,248$ 5,804,049$ 4,855,077$ 5,281,891$ 5,867,934$ 6,151,270$ 7,534,619$ 7,583,173$ 6,940,598$ 11,359,980$

Total business-type activities 5,486,248 5,804,049 4,855,077 5,281,891 5,867,934 6,151,270 7,534,619 7,583,173 6,940,598 11,359,980

Program revenue

Charges for services:

Sanitation 5,981,595 6,094,380 6,150,774 6,626,025 6,729,881 7,548,245 8,405,871 8,755,702 8,364,653 23,844,204

Operating grants and contributions 108,566 83,808 159,913 - - - - 206,974 99,386 115,181

Total business-type activities

program revenues 6,090,161 6,178,188 6,310,686 6,626,025 6,729,881 7,548,245 8,405,871 8,962,676 8,464,039 23,959,385

Net revenue (expense) 603,913 374,139 1,455,610 1,344,134 861,947 1,396,975 871,252 1,379,503 1,523,441 12,599,405

General reveues

Unrestricted investment earnings 1,004,069 810,774 463,350 196,221 182,000 199,250 233,271 41,693 85,816 534,315

Gain (loss) on sale of assets - - - - - - - - - -

Miscellaneous - - - - 107,674 - 29,500 139,433 273,389 333,313

Transfers - - - (14,788) 24,770 - - (22,208) (27,743) 743,572

Total general revenues 1,004,069 810,774 463,350 181,433 314,444 199,250 262,771 158,918 331,462 1,611,200

Change in net position

-business-type activities 1,607,982$ 1,184,913$ 1,918,960$ 1,525,567$ 1,176,391$ 1,596,225$ 1,134,023$ 1,538,421$ 1,854,903$ 14,210,605$

Primary Government

Expenses

Governmental activities 366,721,436$ 365,923,132$ 365,923,133$ 383,986,105$ 369,672,540$ 363,315,008$ 365,182,392$ 411,230,168$ 429,427,176$ 454,733,033$

Business-type activities 5,486,248 5,804,049 4,855,077 5,281,891 5,867,934 6,151,270 7,534,619 7,583,173 6,940,598 11,359,980

Total 372,207,684 371,727,181 370,778,210 389,267,996 375,540,474 369,466,278 372,717,011 418,813,341 436,367,774 466,093,013

Program revenue

Governmental activities 275,566,524 284,706,583 284,706,583 290,164,949 272,051,210 265,011,150 256,688,107 318,540,301 318,339,195 336,900,340


Total 281,656,685 290,884,771 291,017,269 296,790,974 278,781,091 272,559,395 265,093,978 327,502,977 326,803,234 360,859,725

Net expense

Governmental activities (91,154,912) (81,216,549) (81,216,550) (93,821,156) (97,621,330) (98,303,858) (108,494,285) (92,689,867) (111,087,981) (117,832,693)

Business-type activities 603,913 374,139 1,455,610 1,344,134 861,947 1,396,975 871,252 1,379,503 1,523,441 12,599,405

Total (90,550,999) (80,842,410) (79,760,940) (92,477,022) (96,759,383) (96,906,883) (107,623,033) (91,310,364) (109,564,540) (105,233,288)

General revenue

Governmental activities 87,865,466 77,578,131 77,578,131 74,785,004 77,988,152 94,082,698 101,671,455 73,180,419 78,014,329 91,772,245

Business-type activities 1,004,069 810,774 463,350 181,433 314,444 199,250 262,771 158,918 331,462 1,611,200

Total 88,869,535 78,388,905 78,041,481 74,966,437 78,302,596 94,281,948 101,934,226 73,339,337 78,345,791 93,383,445

Change in net position

Governmental activities (3,289,446) (3,638,418) (3,638,419) (19,036,152) (19,633,178) (4,221,160) (6,822,830) (19,509,448) (33,073,652) (26,060,448)


Total primary government

change in net position (1,681,464)$ (2,453,505)$ (1,719,459)$ (17,510,585)$ (18,456,787)$ (2,624,935)$ (5,688,807)$ (17,971,027)$ (31,218,749)$ (11,849,843)$


COUNTY OF BUTTE, CALIFORNIA CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS LAST TEN YEARS

(ACCRUAL BASIS OF ACCOUNTING)

(137)

For the Fiscal Year Ended June 30,

2010

General Fund

Reserved for:

Encumbrances 2,348,768$

Imprest cash 84,345

Prepaid items 1,848

Deposits with others 2,500

General restrictions 13,844,851

Debt service 1,572,685

Inventory 154,369

Unreserved:

Designated 115,000

Undesignated 16,710,645

Total general fund balance 34,835,011

All other Governmental Funds

Reserved for:

Encumbrances 10,662,956

Imprest cash 2,700

Prepaid items 8,945

Deposits with others 297

Long-term loans receivable -

Legislative/ Grant restrictions 25,932,333

Debt service 7,875,805

Inventories 284,270

Unreserved:

Designated, reported in:

Special revenue funds 4,460,824

Undesignated, reported in:

Special revenue funds 15,206,987

Capital projects funds 551,122

Total other governmental

fund balances 64,986,239

COUNTY OF BUTTE, CALIFORNIA FUND BALANCES



(138)

2011 2012 2013 2014 2015 2016 2017 2018 2019

General Fund

Nonspendable 122,064 290,483 150,080 157,012 607,460 238,618 668,635 726,166 675,069

Restricted 13,842,210 18,714,771 15,812,903 19,171,026 26,840,249 27,132,083 27,253,851 27,452,833 29,537,504

Committed 2,628,878 808,712 5,709,505 5,831,455 - 7,500,000 8,000,000 8,000,000 8,000,000

Assigned 6,559,485 5,059,485 714,346 30,278 28,259 28,867 - 24,978 2,672,403

Unassigned 11,197,976 12,396,380 17,267,531 14,708,683 23,993,723 23,371,872 15,017,700 12,579,635 14,012,088

34,350,613 37,269,831 39,654,365 39,898,454 51,469,691 58,271,440 50,940,186 48,783,612 54,897,064

All other Governmental Funds

Nonspendable 323,212 364,031 340,758 322,391 314,201 287,987 269,054 249,745 354,328

Restricted 64,521,687 64,470,569 63,415,020 67,838,156 75,587,815 78,274,786 83,188,294 94,901,376 86,022,657

Committed - - - - - - - - -

Assigned - - (2,203,060) - - - - - 126,744

Unassigned - (1,726,040) - - - - - - -

64,844,899$ 63,108,560$ 61,552,718$ 68,160,547$ 75,902,016$ 78,562,773$ 83,457,348$ 95,151,121$ 86,503,729$

Note: In 2011, the County implemented GASB Statement No. 54 under which governmental fund balances were reported as nonspendable, restricted,

committed, assigned and unassigned compared to reserved and unreserved.


COUNTY OF BUTTE, CALIFORNIA CHANGES IN FUND BALANCES



(139)

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

REVENUE

Taxes 54,091,251$ 54,334,212$ 51,336,650$ 52,446,752$ 54,343,606$ 67,953,905$ 64,269,987$ 65,222,721$ 69,263,178$ 74,001,333$

License and permits 3,720,735 3,123,312 3,120,393 3,316,514 3,808,020 3,896,371 3,603,798 3,614,103 3,975,055 4,306,424

Fines, forfeitures and penalties 3,307,221 3,835,387 3,233,042 3,138,357 2,173,480 3,147,613 8,144,022 6,655,205 6,267,424 6,572,025

Revenues from use of money 4,063,901 2,766,269 1,570,990 3,167,371 3,719,926 3,801,896 6,866,665 4,363,627 4,847,962 8,964,938

Aid from other governments 256,476,762 258,983,988 269,779,236 266,362,753 245,850,909 255,545,197 256,811,754 272,627,250 279,421,740 289,660,515

Charges for services 29,300,650 34,248,627 30,672,237 16,483,576 16,810,792 14,787,538 29,675,113 32,348,671 31,700,770 34,544,534

Other 11,688,660 4,521,606 3,934,721 5,041,631 4,459,273 6,891,119 3,539,473 3,462,831 3,836,818 6,101,051

Total revenue 362,649,180 361,813,401 363,647,269 349,956,954 331,166,006 356,023,639 372,910,812 388,294,408 399,312,947 424,150,820

EXPENDITURES

Current

General government 21,456,259 23,348,016 29,192,387 29,382,721 34,986,797 31,817,707 28,942,422 39,249,054 33,486,550 43,233,514


Public ways and facil ities 22,211,130 18,282,672 18,433,994 22,205,964 21,242,482 19,082,142 16,887,900 21,029,768 19,403,730 23,750,263


Public assistance 143,751,638 142,735,533 140,936,590 135,233,719 112,558,764 121,408,562 128,880,213 127,459,323 128,616,684 131,971,006

Education 3,227,903 2,714,077 3,149,286 2,407,061 2,508,004 3,255,644 3,654,022 4,056,341 3,631,215 3,902,990

Recreation and cultural services 538,899 344,806 363,065 76,733 252,717 463,469 116,409 157,652 154,178 146,466

Debt service

Principal 746,483 767,210 765,957 738,305 1,105,042 2,028,202 2,278,656 1,205,465 2,126,452 2,348,709

Interest 2,597,561 2,398,702 2,387,171 2,001,044 1,969,457 1,923,814 2,090,317 2,223,417 2,460,362 2,638,624

Total expenditures 356,312,993 347,104,978 362,567,247 352,479,865 326,794,577 341,543,405 367,306,018 392,617,063 398,290,558 428,672,139

Excess (deficiency) of revenues

over expenditures 6,336,187 14,708,423 1,080,022 (2,522,911) 4,371,429 14,480,234 5,604,794 (4,322,655) 1,022,389 (4,521,319)

OTHER FINANCING SOURCES (USES)

Sales of capital assets 72,392 68,894 169,364 96,457 238,595 36,275 163,128 - - -

Capital Lease - - - - - - 34,059 7,166,380 2,658,000 495,702

Transfers in 20,862,960 21,674,746 7,814,774 23,917,358 31,781,697 26,978,872 15,818,443 14,278,691 14,363,847 14,091,351

Transfers out (20,574,185) (20,525,060) (7,492,219) (23,131,187) (31,079,686) (26,978,872) (15,361,724) (13,974,694) (14,091,436) (12,599,674)

Issuance of debt - - 272,915 - 1,539,884 4,796,195 3,203,805 - - -

Total other financing sources 361,167 1,218,580 764,834 882,628 2,480,490 4,832,470 3,857,711 7,470,377 2,930,411 1,987,379

Net change in fund balance 6,697,354$ 15,927,003$ 1,844,856$ (1,640,283)$ 6,851,919$ 19,312,704$ 9,462,505$ 3,147,722$ 3,952,800$ (2,533,940)$

Debt service as a percentage of

non capital expenditures 2.90% 1.00% 0.90% 0.80% 0.90% 1.20% 1.20% 0.90% 1.17% 1.19%


COUNTY OF BUTTE, CALIFORNIA PROPERTY TAXES, LEVIES, AND COLLECTIONS

DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN YEARS

(MODIFIED ACCRUAL BASIS OF ACCOUNTING)

(140)

Fiscal Year

Total Tax Levy For Fiscal Year

Amount Collected

Percentage of Levy

Collections of Delinquent Tax

from Prior Year(1)

Amount Collected

Percentage of Levy

2010 199,175,438 190,591,457 95.69% 4,447,409 195,038,866 97.92%2011 193,037,125 186,558,046 96.64% 2,945,199 189,503,245 98.17%2012 190,697,309 185,141,785 97.09% 2,537,452 187,679,237 98.42%2013 188,546,914 183,835,994 97.50% 2,528,186 186,364,180 98.84%2014 196,435,975 192,402,835 97.95% - 192,402,835 97.95%2015 203,133,678 198,864,507 97.90% - 198,864,507 97.90%2016 212,108,378 207,989,382 98.06% - 207,989,382 98.06%2017 219,852,299 215,651,973 98.09% - 215,651,973 98.09%2018 244,760,740 239,916,966 98.02% - 239,916,966 98.02%2019 249,924,961 243,856,891 97.57% - 243,856,891 97.57%

Note 1: No longer include the current year collections of delinquent taxes since 2014. Taxes by levy year will be reported when information is available.

Note 2: Includes current collections.Source: Auditor-Controller, County of Butte

Collected within the Fiscal Year of the Levy Total Collections to Date(2)

COUNTY OF BUTTE, CALIFORNIA ASSESSED VALUE OF TAXABLE PROPERTY

LAST TEN YEARS

(141)

Fiscal Secured Utility Unsecured Unitary/RR AssessedYear Roll Roll Roll Roll Value

2010 17,716,534,370 7,930,548 867,980,662 693,318,350 19,285,763,930 2011 17,361,801,601 5,152,377 868,120,034 731,199,247 18,966,273,259 2012 17,015,198,786 4,882,202 915,590,669 808,441,660 18,744,113,317 2013 16,770,245,966 4,857,082 906,224,159 846,160,978 18,527,488,185 2014 17,023,988,143 4,821,511 933,895,987 827,992,521 18,790,698,162 2015 17,610,137,111 6,270,694 987,011,434 830,560,304 19,433,979,543 2016 18,500,757,968 6,270,694 1,002,100,240 869,583,584 20,378,712,486 2017 19,265,290,670 6,275,182 1,054,636,741 852,207,957 21,178,410,550 2018 20,348,960,031 6,171,425 1,084,179,714 910,222,389 22,349,533,559 2018 20,348,960,031 6,171,425 1,084,179,714 910,222,389 22,349,533,559 2019 21,402,995,003 6,425,393 1,159,613,736 982,692,125 23,551,726,257


COUNTY OF BUTTE, CALIFORNIA PROPERTY TAX RATES

DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN YEARS

(142)

Basic ParadiseFiscal Countywide Butte Lake IrrigationYear Levy Schools College Madrone District Total

2010 1.00% 0.1822% 0.0209% 1.020% 0.026% 2.2491%2011 1.00% 0.1620% 0.0209% 1.150% 0.024% 2.3569%2012 1.00% 0.3479% 0.0209% 1.250% 0.028% 2.6468%2013 1.00% 0.1603% 0.0209% 1.400% 0.026% 2.6072%2014 1.00% 0.1955% 0.0209% 2.000% 0.021% 3.2373%2015 1.00% 0.1866% 0.0209% 2.000% 0.025% 3.2325%2016 1.00% 0.1628% 0.0209% 2.000% 0.021% 3.2047%2017 1.00% 0.1803% 0.0209% 2.000% 0.025% 3.2262%2018 1.00% 0.1918% 0.0466% 2.000% 0.000% 3.2384%2019 1.00% 0.2349% 0.0413% 2.000% 0.000% 3.2762%

Note: California voters, on June 6, 1978, approved a constitutional amendment to Article XIIIA of the CaliforniaConstitution, commonly known as Proposition 13, which limits the taxing power of the California public agencies.Legislation enacted by the California Legislature to implement Article XIIIA (Statutes of 1978 Chapter 292, as amended) provides that not withstanding any other law, local agencies may not levy property tax except to paydebt service on indebtedness approved by voters prior to July 1, 1978, and that each County will levy themaximum tax permitted by Article XIIIA of $1 per $100 of full cash value. Assessed value is equal to full cashvalue, pursuant to Senate Bill 1656, Statutes of 1978. The rates shown above are percentages of assessed valuation.


0.0000%

0.5000%

1.0000%

1.5000%

2.0000%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Basic Countywide Levy Schools Butte College Lake Madrone Paradise Irrigation District

COUNTY OF BUTTE, CALIFORNIA PRINCIPAL PROPERTY TAX PAYERS

CURRENT YEAR AND TEN YEARS AGO

(143)

Taxpayer Rank Assessed ValuationPercentage of Total Assessed Rank Assessed Valuation

Percentage of Total Assessed

Pacific Gas and Electric Company 1 716,706,220 3.390% 1 435,779,594 2.510%Wild Goose Storage LLC 2 141,290,918 0.668% 2 169,742,532 0.978%Farmland Reserve, Inc. 3 58,578,571 0.277% 5 31,743,821 0.183%MP Core Chico LLC 4 52,766,600 0.250% - 0.000%Pacific Realty Associates L P 5 52,082,913 0.246% 6 30,307,001 0.175%Merle A Webb & Sons 6 45,456,698 0.215% - 0.000%Pacific Bell California 7 42,592,681 0.201% 3 51,354,087 0.296%Pacific Coast Producers 8 41,789,880 0.198% 8 27,769,208 0.160%Union Pacific Railroad Company 9 39,584,458 0.187% - 0.000%Chico Crossroads LP 10 39,256,308 0.186% 7 29,925,000 0.172%Chico Mall Investors LP 0.000% 4 35,315,910 0.203%

Largest Secured Property Valuation 1,230,105,247 5.818% 811,937,153.00 4.677%

Total Secured Property Valuation 21,142,120,359 17,358,691,428

source: Auditor-Controller, County of Butte

2018-19 2009-10

COUNTY OF BUTTE, CALIFORNIA LEGAL DEBT MARGIN INFORMATION

LAST TEN YEARS

(144)

Fiscal Year

Total Assessed Valuation (1)

Legal Debt Limit (2)

Total Net Debt Applicable to

Limit (3)Legal Debt Margin (4)

Legal Debt Margin /

Debt Limit2010 19,285,763,930 241,072,049 - 241,072,049 100%2011 18,966,273,259 237,078,416 - 237,078,416 100%2012 18,744,113,317 234,301,416 - 234,301,416 100%2013 18,527,488,185 231,593,602 - 231,593,602 100%2014 18,790,698,162 234,883,727 - 234,883,727 100%2015 19,433,979,543 242,924,744 - 242,924,744 100%2016 20,378,712,486 254,733,906 - 254,733,906 100%2017 21,178,410,550 264,730,132 - 264,730,132 100%2018 22,349,533,559 279,369,170 - 279,369,170 100%2019 23,551,726,257 294,396,578 - 294,396,578 100%

Note:(1) Total assessed valuation

(2) The legal debt limit is set by statute at 1.25 percent of the total assessed valuation.

(3) The County does not have any General Bonded Debt.

(4) The legal debt margin is the legal debt limit reduced by all general bonded debt.

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Legal Debt Margin (4)

COUNTY OF BUTTE, CALIFORNIA RATIO OF NET GENERAL OBLIGATION BONDED DEBT TO TAXABLE

ASSESSED VALUE AND NET GENERAL OBLIGATION DEBT PER CAPITA LAST TEN YEARS

(145)

Debt Ratio of Net

Gross Payable from Net Bonded Bonded

Fiscal County Assessed Bonded Enterprise Net Debt to Debt per

Year Population (1) Value Debt Revenue Debt Assessed Value Capita

2010 221,331 19,285,763,930

2011 221,388 18,966,273,259

2012 221,273 18,744,113,317

2013 221,485 18,527,488,185

2014 222,316 18,790,698,162

2015 224,323 19,433,979,543

2016 224,601 20,378,712,486

2017 226,404 21,178,410,550

2018 227,621 22,074,282,286

2019 226,466 23,551,726,257

Source:

(1) State of California, Department of Finance

http://www.dof.ca.gov/Forecasting/Demographics/Estimates/e-1/(2) No general obligation bonds issued.

COUNTY OF BUTTE, CALIFORNIA RATIO OF GENERAL BONDED DEBT OUTSTANDING

LAST TEN YEARS (IN THOUSANDS, EXCEPT PER CAPITA)

(146)

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

General Obligation Bonds 50,402,721 49,895,000 49,895,000 49,895,000 49,545,000 49,075,000 48,480,000 47,745,000 46,865,000 45,820,000

Less: Amounts Available in Debt Service Fund (1): 7,732,755 8,788,635 8,802,439 8,844,215 9,355,363 9,940,403 11,169,994 11,903,173 13,804,050 15,937,230

Total Net Obligation Bonds Outstanding: 42,669,966 41,106,365 41,092,561 41,050,785 40,189,637 39,134,597 37,310,006 35,841,827 33,060,950 29,882,770

Percentage of Estimated ActualTaxable Value of Property 0.24% 0.23% 0.24% 0.23% 0.22% 0.21% 0.19% 0.17% 0.15% 0.13%

Per Capita 192.8$ 185.7$ 185.7$ 185.3$ 180.8$ 174.5$ 166.1$ 158.3$ 145.2$ 132.0$

Source: Auditor Controller, County of Butte

COUNTY OF BUTTE, CALIFORNIA OVERLAPPING BONDED DEBT

JUNE 30, 2019

(147)

2018-19 Assessed Valuation: $23,551,726,257 (includes unitary utility valuation and railroad)

Total Debt County’s Share ofOVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2019 % Applicable (1) Debt 6/30/19Butte-Glenn Community College District $93,778,079 87.85% $82,381,229Yuba Joint Community College District 160,906,106 0.158 254,232Chico Unified School District 119,675,000 100 119,675,000Durham Unified School District 7,000,000 100 7,000,000Marysville Joint Unified School District 75,584,522 1.162 878,292Gridley Unified School District School Facilities Improvement District No. 1 2,415,000 100 2,415,000Oroville Union High School District 12,076,385 100 12,076,385Manzanita School District 400,000 100 400,000Oroville School District 1,857,130 100 1,857,130Thermalito Union School District 3,834,473 100 3,834,473Sutter Butte Flood Control Agency Assessment District 85,560,000 7.011 5,998,612 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $236,770,353

DIRECT AND OVERLAPPING GENERAL FUND DEBT:Butte County Certificates of Participation $12,827,308 100.00% $12,827,308Butte County Pension Obligation Bonds 45,820,000 100 45,820,000Yuba Joint Community College District General Fund Obligations 11,056,249 0.158 17,469Marysville Joint Unified School District Certificates of Participation 19,931,099 1.162 231,599City of Oroville Pension Obligation Bonds 3,445,000 100 3,445,000City of Paradise Pension Obligation Bonds 5,037,472 100 5,037,472 TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT $67,378,848 Less: Butte County Certificates of Participation supported by landfill revenues 2,150,000 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $65,228,848

OVERLAPPING TAX INCREMENT DEBT (Successor Agencies): $93,090,000 100.00% $93,090,000

TOTAL GROSS DIRECT DEBT $58,647,308 TOTAL NET DIRECT DEBT $56,497,308 TOTAL OVERLAPPING DEBT $338,591,893

GROSS COMBINED TOTAL DEBT $397,239,201 (2) NET COMBINED TOTAL DEBT $395,089,201

1

2 Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.

Ratios to 2018-19 Assessed Valuation: Total Overlapping Tax and Assessment Debt 1.01% Total Gross Direct Debt ($58,647,308) 0.25% Total Net Direct Debt ($56,497,308) 0.24% Gross Combined Total Debt 1.69% Net Combined Total Debt 1.68%

Ratios to Redevelopment Successor Agencies Incremental Valuation ($5,194,298,467): Total Overlapping Tax Increment Debt 1.79%

AB:($500)

The percentage of overlapping debt applicable to the county is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the county divided by the district's total taxable assessed value.

COUNTY OF BUTTE, CALIFORNIA RATIO OF OUTSTANDING DEBT BY TYPE

LAST TEN YEARS

(148)

Certificates Certificates Total Percentage Percentage

Fiscal of Loans/ Capital of Capital Primary of Assessed of Personal Per

Year Bonds Participation Notes Leases Loans Participation Leases Government Value Income Capita

2010 50,403 1,945 2,278 922 300 11,300 20 67,168 0.3743% 0.94% 303

2011 49,895 2,439 2,053 848 250 10,550 - 66,035 0.3806% 0.90% 304

2012 49,895 1,835 1,575 699 200 9,770 - 63,974 0.3677% 0.84% 289

2013 49,895 1,835 1,575 699 150 8,960 559 63,673 0.3601% 0.87% 287

2014 49,895 1,422 1,322 2,150 100 8,210 951 64,050 0.3495% 0.81% 288

2015 49,075 5,791 1,059 1,284 50 7,235 744 65,238 0.3507% N/A 291

2016 48,480 8,583 654 450 - 6,320 534 65,021 0.3333% N/A 289

2017 47,745 8,471 400 7,512 - 4,220 1,137 69,485 0.3281% N/A N/A

2018 46,865 8,354 136 9,800 - 3,195 761 69,111 0.3131% N/A N/A

2019 45,820 8,234 - 8,752 - 2,150 1,323 66,279 0.2814% N/A N/A


Governmental Activities Business-type Activities

COUNTY OF BUTTE, CALIFORNIA DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN YEARS

(149)

Per Capita

Fiscal Personal Personal School Unemployment

Year Population (1) Income (2) Income (2) Enrollment (3) Rate (1)

2010 221,331 7,163,944,000 32,368 31,539 13.1%

2011 221,388 7,500,846,828 33,881 31,226 13.1%

2012 221,273 7,643,654,512 34,544 31,255 12.6%

2013 221,485 7,347,286,000 33,356 31,262 12.2%

2014 222,316 8,298,110,000 37,326 31,069 8.3%

2015 224,323 8,774,842,791 39,117 31,002 8.6%

2016 224,601 8,989,495,795 40,024 31,155 7.3%

2017 226,404 9,009,925,000 39,971 31,384 6.0%

2018 227,621 9,465,874,000 41,725 31,155 5.7%

2019 226,466 9,925,515,000 43,287 31,852 5.2%

Detail of estimated population, as January, 2019:

Incorporated Cities/Towns:

City of Biggs 2,066

City of Chico 112,111

City of Gridley 7,224

City of Orovil le 21,773

Town of Paradise 4,590

Total of incorporated 147,764

Total of unincorporated 78,702

Total Population 226,466

Note: Personal income and per capita income are based on the calendar year information ending

during the fiscal year.

Sources:

(1)

(2) Bureau of Economic Analysis (www.bea.gov/bea/regional/reis/).

(3) California Employment Development Department (www.labormarketinfo.edd.ca.gov/file/lfmonth/chic$pds.pdf)

Department of Finance (www.dof.ca.gov) E-1 City/County Population Estimates January 1, 2018 and 2019

COUNTY OF BUTTE, CALIFORNIA COUNTY INDUSTRY EMPLOYMENT DISTRIBUTION

JUNE 30, 2019

(150)

Industry Employment Distribution

FarmMining Logging and ConstructionManufacturingTrade, Transportation, & Util itiesInformationFinancial ActivitiesProfessional & Business ServicesEducation & Health ServicesLeisure & HospitalityOther ServicesGovernment

Source: State of California, Employment Development Department, Labor Market Information Division, Snap Shot

3.99%

3.55%5.65%

4.43%22.06%

15.96%1.00%3.77%6.43%

22.84%10.31%

3.55%5.65%3.99%

15.96%

1.00%3.77%6.43%

22.84%

10.31%4.43%

22.06%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

Industry Employment Distribution

Series1

COUNTY OF BUTTE, CALIFORNIA MISCELLANEOUS STATISTICAL INFORMATION

JUNE 30, 2019

(151)

Geographical Location:

Area of County: 1,665 square miles

County Seat: Oroville, California

Date of Incorporation: February 18, 1850

Form of Government: General Law County, governed by a five-member Board of Supervisors

Fiscal Year Begins: July 1

County Employees: 2,303 as of June 30, 2019


One of the State's original 27 counties, Butte County is located in the northern portion of the Sacramento Valley. Rising from the Sacramento River, its western boundary, to the Sierra Nevada Mountains, its eastern perimeter, the county's 1,665 square miles range in elevation from sixty feet to over 7,000 feet, resulting in a considerable variation in climate.

COUNTY OF BUTTE, CALIFORNIA PRINCIPAL EMPLOYERS

JUNE 30, 2019 AND TEN YEARS AGO

(152)

Company Employees RankApproximate

Employees Rank

Enloe Medical Center, Inc. 3,660 1 3.81% 1,825 3 1.78%

Butte County 2,303 2 2.40% 2,262 2 2.21%

Orovil le Hospital 2,056 3 2.14% 1,170 6 1.14%

California State University, Chico 1,885 4 1.96% 2,275 1 2.22%

Chico Unified School District 1,800 5 1.88% 1,400 5 1.37%

Butte County Office of Education 1,500 6 1.56% 600 7 0.59%

Pacific Coast Producers 1,400 7 1.46% 300 10 0.29%

Butte Glenn Community College 1,034 8 1.08% 1,500 4 1.46%

Walmart 1,000 9 1.04% 400 9 0.39%

Feather Falls Casino and Lodge 527 10 0.55% 417 8 0.41%

Total 17,165 17.71% 12,149 11.45%

Source: www.labormarketinfo.edd.ca.gov/majorer/countymajorer.asp

Individual companies

2019 2010

Percentage of Total County Employment

Percentage of Total County Employment

COUNTY OF BUTTE, CALIFORNIA OPERATING INDICATORS BY FUNCTION

LAST TEN YEARS

(153)

Function/Program 2010 2011 2012 2013 2014 2015 2016 2017 2018 2018

Sheri ff

Number of Bookings 13,487 12,792 13,285 12,597 13,009 11,613 12,037 11,373 13,327 12,870

Coroner Case Load 1,734 1,606 1,656 1,729 1,521 1,741 1,832 1,797 1,866 916

Cal l s for Services - Unincorp. Areas 63,787 60,499 58,843 63,664 62,065 63,239 66,236 72,449 73,116 67,509

Fire

Medica l Ass is tance 11,941 12,054 12,511 12,255 11,148 12,527 11,644 12,339 14,797 13,208

Fires Extinguished 2,169 2,022 2,311 2,426 2,167 2,713 1,789 1,891 2,629 2,342

Probation

Juveni les in Detention (bed days) 17,564 17,789 17,593 17,086 12,466 11,877 9,801 10,016 11,603 8,538

Waste Management

Landfi l l Tonnage 152,257 152,822 154,531 153,691 135,919 151,865 166,783 183,842 187,250 515,491

Recycl ing Tonnage 13,768 12,420 12,094 11,643 13,183 11,775 11,704 9,992 19,180 16,780

County Libraries

Tota l Ci rculation 840,078 918,069 963,052 748,756 980,903 978,698 920,489 831,571 803,811 677,506

Reference Questions Answered 27,449 32,526 39,798 39,798 50,391 55,110 46,163 32,906 25,100 21,957

Patrons 79,326 74,057 80,135 87,954 103,439 105,479 113,524 121,164 88,042 93,726

Programs Offered 1,415 1,377 1,510 1,510 2,010 1,865 2,060 2,080 1,903 1,257

Program Attendance 28,395 32,943 36,751 6,036 27,554 36,146 33,452 31,218 32,457 26,658

Vis i tor Count 642,112 640,096 672,851 672,851 622,692 648,421 620,782 617,098 588,774 476,732

Clerk-Recorder

Officia l Records Recorded 52,738 52,863 53,996 62,605 51,662 52,826 54,854 56,788 53,325 62,596

Vita l Records Copies Issued 12,430 12,393 11,771 10,785 11,410 10,913 8,492 11,418 11,921 13,333

Officia l Records Copies Issued 4,272 5,431 5,161 4,954 4,347 4,276 4,379 5,355 5,972 5,552

Publ ic Socia l Services

CalWORKS Cl ients 102,663 103,267 101,884 100,669 97,567 94,415 88,239 83,793 79,857 71,544

Food Stamp Cl ients 290,417 311,695 339,557 356,989 365,153 377,296 386,989 377,332 370,969 327,782

Medi-Ca l Cl ients 169,544 245,592 230,464 211,106 242,111 380,421 439,199 448,142 459,225 459,658

In-Home Support Services 36,322 33,376 33,660 33,749 31,952 33,747 36,001 37,872 39,785 39,048

Foster Care Placements 7,065 5,812 5,070 4,402 4,615 5,084 5,262 5,066 4,706 4,720

Chi ld Welfare Services 10,150 9,800 8,936 7,441 6,581 7,802 7,732 8,082 7,900 7,516

Source: Auditor-Control ler, County of Butte

COUNTY OF BUTTE, CALIFORNIA CAPITAL ASSET STATISTICS BY FUNCTION

LAST TEN YEARS

(154)

Function/Program 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Sheriff

Patrol Stations 4 4 4 4 4 4 4 4 4 4

Patrol Vehicles 50 61 82 81 92 97 97 104 109 105

Fire

Stations 26 26 26 26 26 26 26 26 26 25

Trucks 40 40 40 40 40 40 40 40 40 40

Waste Management

Landfil ls 1 1 1 1 1 1 1 1 1 1

Capacity in Tons 11,793,202 11,652,343 11,509,906 11,367,858 11,233,172 11,081,307 10,963,435 9,269,503 6,872,634 6,357,143

County Libraries

Branch Libraries 6 6 6 6 6 6 6 6 6 6

Book Mobiles 1 1 1 1 1 1 1 2 2 2

Books in Collection 302,828 243,280 256,893 246,731 222,150 214,510 204,358 193,648 181,963 194,858

Electronic Books n/a n/a n/a 3,406 581 716 55,426 94,861 119,204 121,594


GLOSSARY

COUNTY OF BUTTE, CALIFORNIA GLOSSARY FOR THE COMPREHENSIVE ANNUAL REPORT

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(155)

ACCOUNTABILITY. The term used by the Government Accounting Standards Board (GASB) to describe a government’s duty to justify the raising and spending of public resources. The GASB has identified accountability as the “paramount objective” of financial reporting “from which all other objectives must flow.” ACCOUNTS PAYABLE. A short-term liability account reflecting amounts owed to private persons or organizations for goods and services received by a government. ACCOUNTS RECEIVABLE. An asset account reflecting amounts due from private persons or organizations for goods and services furnished by a government (but not including amounts due from other funds or other governments). ACCRUAL BASIS OF ACCOUNTING. Method of accounting that recognizes the financial effect of transactions, events, and interfund activity when they occur, regardless of the timing of related cash flow. ACCUMULATED DEPRECIATION. A contra-asset account used to report the accumulation of periodic credits to reflect the expiration of the estimated service life of capital assets. ADVANCE FROM OTHER FUNDS. A liability account used to record noncurrent portions of a long-term debt owed by one fund to another fund within the same reporting entity. See DUE TO OTHER FUNDS and INTERFUND RECEIVABLE/PAYABLE. ADVANCE TO OTHER FUNDS. An asset account used to record noncurrent portions of a long-term loan from one fund to another fund within the same reporting entity. See DUE FROM OTHER FUNDS. AGENCY FUND. A fund normally used to account for assets held by a government in a custodial capacity for individuals, private organizations or other governments and/or other funds. AMORTIZATION. (1) The portion of the cost of a limited-life or intangible asset charged as an expense during a particular period. (2) The reduction of debt by regular payments of principal and interest sufficient to retire the debt by maturity. APPROPRIATION. A legal authorization granted by a legislative body to make expenditures and to incur obligations for specific purposes. An appropriation usually is limited in amount and time it may be expended. ASSESSED VALUATION. A valuation set upon real estate or other property by a government as a basis for levying taxes. ASSIGNED FUND BALANCE. Amounts that are constrained by the County’s intent to be used for specific purposes. The intent can be established at either the highest level of decision-making, or by a body or an official designated for that purpose. This is also the classification for residual funds in the County’s special revenue funds.

COUNTY OF BUTTE, CALIFORNIA GLOSSARY FOR THE COMPREHENSIVE ANNUAL REPORT (CONTINUED)

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AUDITORS’ REPORT. In the context of a financial audit, a statement by the auditor describing the scope of the audit and the auditing standards applied in the examination, and setting forth the auditor's opinion on the fairness of presentation of the financial information in conformity with GAAP or some other comprehensive basis of accounting. BALANCE SHEET. The financial statement disclosing the assets, liabilities, and equity of an entity at a specified date in conformity with GAAP. BASIC FINANCIAL STATEMENTS. The minimum combination of financial statements and note disclosures required for fair presentation in conformity with GAAP. Basic financial statements have three components: government-wide financial statements, fund financial statements, and notes to the financial statements. BASIS OF ACCOUNTING. A term used to refer to when revenues, expenditures, expenses, and transfers - and the related assets and liabilities are recognized in the accounts and reported in the financial statements. Specifically, it relates to the timing of the measurements made, regardless of the nature of the measurement, on either the cash or the accrual method. BUDGET. A plan of financial operation embodying an estimate of proposed expenditures for a given period and the proposed means of financing them. Used without any modifier, the term usually indicates a financial plan for a single fiscal year. The term "budget" is used in two senses in practice. Sometimes it designates the financial plan presented to the appropriating governing body for adoption, and sometimes, the plan finally approved by that body. BUDGETARY CONTROL. The control or management of a government or enterprise in accordance with an approved budget to keep expenditures within the limitations of available appropriations and available revenues. CAPITAL ASSETS. Land, improvements to land, easements, buildings, building improvements, vehicles, machinery, equipment, and all other tangible or intangible assets that are used in operations and that have initial useful lives extending beyond a single reporting period. CAPITAL EXPENDITURES. Expenditures resulting in the acquisition of or addition to the government’s general capital assets. CAPITALIZATION THRESHOLD. The criteria used by a government to determine which outlays should be reported as capital assets. CAPITAL LEASE. An agreement that conveys the right to use property, plant, or equipment, usually for a stated period of time. See LEASE-PURCHASE AGREEMENTS. CAPITAL PROJECTS FUND. A fund created to account for financial resources that are restricted, committed or assigned for the acquisition or construction of major capital facilities (other than those financed by proprietary funds and trust funds).


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CASH BASIS. A basis of accounting under which transactions are recognized only when cash is received or disbursed. CASH WITH FISCAL AGENT. An asset account reflecting deposits with fiscal agents, such as commercial banks, for the payment of bond principal and interest. CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING PROGRAM. A voluntary program administered by the GFOA to encourage governments to publish efficiently organized and easily readable CAFR’s and to provide technical assistance and peer recognition to the finance officers preparing them. CHANGE IN THE FAIR VALUE OF INVESTMENTS. The difference between the fair value of investments at the beginning of the year and at the end of the year, taking into consideration investment purchases, sales, and redemptions. COMMITTED FUND BALANCE, Amounts that can only be used for specific purposes determined by formal action of the County’s highest level of decision-making authority (the Board of Supervisors) and that remain binding unless removed in the same manner. The underlying action that imposed the limitation needs to occur no later than the close of the reporting period. COMPENSATED ABSENCES. Absences, such as vacation, illness and holidays, for which it is expected employees will be paid. The term does not encompass severance or termination pay, postretirement benefits, deferred compensation or other long-term fringe benefits, such as group insurance and long-term disability pay. COMPONENT UNIT. A legally separate organization that must be included in the financial report of the primary government (primary government + component units = financial reporting entity). COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR). A financial report that contains, at a minimum, three sections: 1) introductory 2) financial, and 3) statistical, and whose financial section provides information on each individual fund and component unit. CONCENTRATION OF CREDIT RISK. The risk of loss attributed to the magnitude of a government’s investment in a single issuer. CONTINGENT LIABILITY. Items that may become liabilities as a result of conditions undetermined at a given date, such as guarantees, pending lawsuits, judgments under appeal, unsettled disputed claims, unfilled purchase orders, and uncompleted contracts. Contingent liabilities should be disclosed within the financial statements (including the notes) when there is a reasonable possibility a loss may have been incurred. Guarantees, however, should be disclosed even though the possibility of loss may be remote. CREDIT RISK. The risk that an issuer or counter-party to an investment will not fulfill its obligations.


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CURRENT FINANCIAL RESOURCES MEASUREMENT FOCUS. Measurement focus according to which the aim of a set of financial statements is to report the near-term (current) inflows, outflows, and balances of expendable (spendable) financial resources. The current financial resources measurement focus is unique to accounting and financial reporting for state and local governments and is used solely for reporting the financial position and results of operations of governmental funds. DEBT. An obligation resulting from the borrowing of money or from the purchase of goods and services. Debts of governments include bonds, time warrants, and notes. DEBT SERVICE FUND. A fund established to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. DEFERRED INFLOWS. An acquisition of net position by the government that is applicable to a future reporting period. DEFERRED OUTFLOWS. A consumption of net position by the government that is applicable to a future reporting period. DEFICIT. (1) The excess of the liabilities of a fund over its assets. (2) The excess of expenditures over revenues during an accounting period or, in the case of proprietary funds, the excess of expenses over revenues during an accounting period. DEFINED BENEFIT PENSION PLAN. A pension plan having terms that specify the amount of pension benefits to be provided at a future date or after a certain period of time; the amount specified usually is a function of one or more factors such as age, years of service, and compensation. DEPRECIATION. A method of allocating the cost of an asset over its useful life. In accounting for depreciation, the cost of a capital asset, less any salvage value, is prorated over the estimated service life of such an asset, and each period is charged with a portion of such cost. Through this process, the entire cost of the asset is ultimately charged off as an expense. DUE FROM OTHER FUNDS. An asset account used to indicate amounts owed to a particular fund by another fund for goods sold or services rendered. This account includes only short-term obligations on open account, not interfund loans. DUE TO OTHER FUNDS. A liability account reflecting amounts owed by a particular fund to another fund for goods sold or services rendered. These amounts include only short-term obligations on open account, not interfund loans. ECONOMIC RESOURCES MEASUREMENT FOCUS. Measurement focus under which the aim of a set of financial statements is to report all inflows, outflows, and balances affecting or reflecting an entity’s net position. The economic resources measurement focus is used for proprietary and fiduciary funds, as well as for government-wide financial reporting. It is also used by business enterprises in the private sector.


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ENCUMBRANCES. Commitments related to unperformed (executory) contracts for goods or services. Used in budgeting, encumbrances are not GAAP expenditures or liabilities, but represent the estimated amount of expenditures ultimately to result if unperformed contracts in process are completed. ENTERPRISE FUND. Proprietary fund type used to report an activity for which a fee is charged to external users for goods and services. EXPENDITURE-DRIVEN GRANTS. Government-mandated or voluntary nonexchange transactions in which expenditure is the prime factor for determining eligibility. Also referred to as reimbursement grants. EXCHANGE-LIKE TRANSACTION. Transaction in which there is an identifiable exchange between the reporting government and another party, but the values exchanged may not be quite equal or the direct benefits of the exchange may not be exclusively for the parties to the exchange. EXPENDITURES. Decreases in net financial resources. Expenditures include current operating expenses requiring the present or future use of net current assets, debt service and capital outlays, and intergovernmental grants, entitlement and shared revenues. EXPENSES. Outflows or other using up of assets or incurrences of liabilities (or a combination of both) from delivering or producing goods, rendering services or carrying out other activities that constitute the entity's ongoing major or central operations. EXTERNAL AUDITORS. Independent auditors typically engaged to conduct an audit of a government’s financial statements. EXTERNAL INVESTMENT POOL. An arrangement that commingles (pools) the moneys of more than one legally separate entity and invests, on the participants’ behalf, in an investment portfolio; one or more of the participants is not part of the sponsors reporting entity. An external investment pool can be sponsored by an individual government, jointly by more than one government, or by a nongovernmental entity. An investment pool that is sponsored by an individual state or local government is an external investment pool if it includes participation by a legally separate entity that is not part of the same reporting entity as the sponsoring government. If a government-sponsored pool includes only the primary government and its component units, it is an internal investment pool and not an external investment pool. FAIR VALUE. The amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC). A corporation created by the federal government that insures deposits in banks and savings associations. FIDUCIARY FUNDS. The trust and agency funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units, and or other funds.


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FINANCIAL RESOURCES. Resources that are or will become available for spending. Financial resources include cash and resources ordinarily expected to be converted to cash (receivables, investments). Financial resources may also include inventories and prepaids (because they obviate the need to expend current available resources). FISCAL ACCOUNTABILITY. Responsibility of governments to justify that their actions in the current period have complied with public decisions concerning the raising and spending of public moneys in the short term (usually one budgetary cycle or one year). FISCAL AGENT. A fiduciary agent, usually a bank or county treasurer, who performs the function of paying debt principal and interest when due. FOREIGN CURRENCY RISK. The risk that changes in exchange rate will adversely affect the fair value of an investment or a deposit. FUND. A fiscal and accounting entity with a self-balancing set of accounts in which cash and other financial resources, all related liabilities and residual equities, or balances, and changes therein, are recorded and segregated to carry on specific activities or attain certain objectives in accordance with special regulations, restrictions, or limitations. FUND BALANCE. Net position of a governmental fund (difference between assets, liabilities, deferred outflows of resources, deferred inflows of resources). FUND FINANCIAL STATEMENTS. Basic financial statements presented for funds, in contrast with government-wide financial statements. FUND TYPE. Any one of eleven categories into which all individual funds can be classified. Governmental fund types include the general fund, special revenue funds, debt service funds, capital projects funds, and permanent funds. Proprietary fund types include enterprise funds and internal service funds. Fiduciary fund types include pension (and other employee benefit) trust funds, investment trust funds, private-purpose trust funds and agency funds. GENERAL FUND. The general fund is one of five governmental fund types and typically serves as the chief operating fund of the government. The general fund is used to account for all financial resources except those required to be accounted for in another fund. GENERAL REVENUES. All revenues not reported as program revenues in the government-wide statement of activities. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP). The conventions, rules, and procedures that serve as the norm for the fair presentation of financial statements. The various sources of GAAP for state and local governments are set forth by SAS No. 69, The Meaning of “Present Fairly in Conformity with Generally Accepted Accounting Principles” in the Independent Auditors’ Report.


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GOVERNMENTAL ACCOUNTING. The composite activity of analyzing, recording, summarizing, reporting and interpreting the financial transactions of governments. GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB). The ultimate authoritative accounting and financial reporting standard-setting body for state and local governments. The GASB was established in June 1984 to replace the National Council on Governmental Accounting (NCGA). GOVERNMENTAL FUNDS. Funds generally used to account for tax-supported activities. There are five different types of governmental funds: the general fund, special revenue funds, debt service funds, capital projects funds, and permanent funds. GOVERNMENT-WIDE FINANCIAL STATEMENTS. Financial statements that incorporate all of a government’s governmental and business-type activities, as well as its nonfiduciary component units. There are two basic government-wide financial statements: the statement of net position and the statement of net activities. Both basic governmental financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. INFRASTRUCTURE. Long-lived capital assets that normally are stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets. Examples of infrastructure assets include roads, bridges, tunnels, drainage systems, water and sewer systems, dams and lighting systems. INTEREST RATE RISK. The risk that changes in interest rates will adversely affect the fair value of an investment or a deposit. INTERFUND LOANS. Flow of assets (such as cash or goods) between funds and blended component units of the primary government without equivalent flows of assets in return and without a requirement for payment. INTERNAL SERVICE FUND. Proprietary fund type that may be used to report any activity that provides goods or services to other funds, departments or agencies of the primary government and its component units, or to other governments, on a cost-reimbursement basis. JOINT VENTURE. A legal entity or other organization that results from a contractual arrangement and that is owned, operated, or governed by two or more participants. LAPSE. As applied to appropriations, the automatic termination of an appropriation. Except for indeterminate appropriations and continuing appropriations, an appropriation is made for a certain period of time. At the end of this period, any unexpended or unencumbered balance thereof lapses, unless otherwise provided by law. LEASE-PURCHASE AGREEMENTS. Contractual agreements that are termed leases, but that in substance are purchase contracts.


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LEGAL LEVEL OF BUDGETARY CONTROL. The level at which a government’s management may not reallocate resources without special approval from the legislative body. LIABILITIES. Probable future sacrifices of economic benefits, arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events. LOANS RECEIVABLE. An asset account reflecting amounts loaned to individuals or organizations external to a government, including notes taken as security for such loans. Loans to other funds and governments should be recorded and reported separately. MAJOR FUND. A governmental fund or enterprise fund reported as a separate column in the basic fund financial statements and subject to a separate opinion in the independent auditor’s report. The general fund is always a major fund. Otherwise, major funds are funds whose revenues/expenditures, assets or liabilities are at least 10% of corresponding totals for all government or enterprise funds and at least 5% of the aggregate amount for all governmental and enterprise funds for the same item. Any other government or enterprise fund may be reported as a major fund if the government’s officials believe that fund is particularly important to financial statement users. MANAGEMENT’S DISCUSSION AND ANALYSIS. Is required supplementary information that introduces the basic financial statements and provides an analytical overview of the government’s financial activities. MEASUREMENT FOCUS. Types of balances (and related changes) reported in a given set of financial statements (economic resources, current financial resources, assets and liabilities resulting from cash transactions). MODIFIED ACCRUAL BASIS. Basis of accounting used in conjunction with the current financial resources measurement focus that modifies the accrual basis of accounting in two important ways: 1) revenues are not recognized until they are measureable and available and 2) expenditures are recognized in the period in which governments in general normally liquidate the related liability rather than when that liability is first incurred (if earlier). NONSPENDABLE FUND BALANCE. The portion of the net position of a governmental fund that cannot be spent either because the underlying resources are not in spendable form or because the government is legally or contractually required to maintain the resources intact. OPERATING LEASE. A lease dose not transfer ownership rights, risks and rewards from the lessor to the lessee, the lease is called an operation lease and is similar to a rental. OTHER FINANCING SOURCES. An increase in the net position of a governmental fund other than revenues. Only items identified as other financing sources in authoritative accounting standards may be classified as such.


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OTHER FINANCING USES. A decrease in the net position of a governmental fund other than expenditures. Only items identified as other financing uses in authoritative accounting standards may be classified as such. OVERLAPPING DEBT. In the context of the statistical section, the outstanding long-term debt instruments of governments that geographically overlap, at least in part, the government preparing the statistical section. That is, debt of another government that at least some of the reporting government’s taxpayers will also have to pay in whole or part. Lower levels of government are not required to treat debt of the state as overlapping debt, even though it technically meets this definition. Furthermore, states, regional governments, and counties are exempted from the requirement to present overlapping debt, although counties are still encouraged to do so. PROGRAM REVENUES. Term used in connection with the government-wide statement of activities. Revenues that derive directly from the program itself or from parties outside the reporting government’s tax base directly related to the program. They reduce the net cost of the function to be financed from the government’s general revenues. PROPRIETARY FUNDS. Funds that focus on the determination of operating income, changes in net position (or cost recovery), financial position, and cash flows. There are two different types of proprietary funds: enterprise funds and internal service funds. REBATABLE ARBITRAGE. A requirement to remit to the federal government interest earnings in excess of interest costs when the proceeds from the sale of tax-exempt securities are reinvested in materially higher yielding taxable securities. REPORTING ENTITY. The oversight unit and all of its component units, if any, that are combined in the CAFR/BFS. REQUIRED SUPPLEMENTARY INFORMATION. (RSI) One of two categories of supporting information: required supplementary information (RSI) and supplementary information (SI) RESTRICTED ASSETS. Assets whose use is subject to constraints that are either (a) externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or (b) imposed by law through constitutional provisions or enabling legislation. RESTRICTED FUND BALANCE. The portion of the net position of a governmental fund that represents resources subject to externally enforceable constraints. RESTRICTED NET POSITION. One of three components of net position that must be reported in both government-wide and proprietary fund financial statements. It consists of restricted assets reduced by liabilities or deferred inflows of resources related to those assets. Generally, a liability or deferred inflow of resources relates to restricted assets if the assets results from a resource flow that also results in the recognition of a liability/deferred inflow of resources or if the liability will be liquidated with the restricted assets reported.


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RETAINED EARNINGS. An equity account reflecting the accumulated earnings of an enterprise or internal service fund. REVENUE BONDS. Bonds whose principal and interest are payable exclusively from earnings of an enterprise fund. In addition to a pledge of revenues, such bonds sometimes contain a mortgage on the enterprise fund's property. RISK MANAGEMENT. All the ways and means used to avoid accidental loss or to reduce its consequences if it does occur. SELF-INSURANCE. A term often used to describe the retention by an entity of a risk of loss arising out of the ownership of property or from some other cause, instead of transferring that risk to an independent third party through the purchase of an insurance policy. It is sometimes accompanied by the setting aside of assets to fund any related losses. Because no insurance is involved, the term self-insurance is a misnomer. SINGLE AUDIT. An audit designed to meet the needs of all federal grantor agencies and performed in accordance with the Single Audit Act of 1984 (as amended) and Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments and Non-Profit Organizations. SPECIAL DISTRICT. An independent unit of local government organized to perform a single government function or a restricted number of related functions. Special districts usually have the power to incur debt and levy taxes; however, certain types of special districts are entirely dependent upon enterprise earnings and cannot impose taxes. Examples of special districts are water districts, drainage districts, flood control districts, hospital districts, fire protection districts, transit authorities, port authorities, and electric power authorities. SPECIAL REVENUE FUND. Governmental fund type used to account for the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects and exclusive of resources held in trust for individuals, private organizations or other governments. TAX AND REVENUE ANTICIPATION NOTES (TRANS). Notes issued in anticipation of the collection of taxes and revenues, usually retirable only from tax collections, and frequently only from the proceeds of the tax and revenues levy whose collection they anticipate. TRUST FUNDS. Funds used to account for assets held by a government in a trustee capacity for individuals, private organizations, other governments, and/or other funds. UNASSIGNED FUND BALANCE, The residual classification for the County’s General fund that includes amounts not contained in the other classifications. In other funds, the unassigned classification is used only if expenditures incurred for specific purposes exceed the amounts restricted, committed, or assigned to those purposes. UNDESIGNATED UNRESERVED FUND BALANCE. The difference between total fund balance in a governmental fund and its nonspendable, restricted, committed and assigned components.


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UNQUALIFIED OPINION. An opinion rendered without reservation by the independent auditor that financial statements are fairly presented. UNRESTRICTED NET POSITION. One of three components of net position that must be reported in both government-wide and proprietary fund financial statements. It is the difference between total net position and its two other components (net investment in capital assets and restricted net position). VARIABLE-RATE INVESTMENT. An investment with terms that provide for the adjustment of its interest rate (such as the last day of the month or a calendar quarter) and that, upon each adjustment until the final maturity of the instrument or the period remaining until the principal amount can be recovered through demand, can reasonably be expected to have a fair value that will be unaffected by interest rate changes.

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